What are “normal” goods? Define and give an example in our current economy. What are “inferior” goods? Define and give an example in our current economy. Do you think luxury goods have more elastic or inelastic demand? Explain.
As you heard in the debates and town hall meetings during the last election, the candidates often differed on the state of the economy. With that in mind, what are two macroeconomic indicators that you would use to assess the economy’s condition over the next six months? Please indicate why you selected them.
Discuss the following statements: Without money, everything would become more expensive. In countries such as Zimbabwe, which had problems with high inflation, the increased use of another country’s currency (such as the U.S. dollar or South African rand) became common. Why do you suppose this occurred?