In the context of elasticity, cross elasticity of demand between two complementary goods is:
A. Infinity
B. Negative
C. Positive
D. Zero
Answer: Option B
Solution (By JKSSB Mock Tests)
For complementary goods (e.g., car and petrol), an increase in the price of one leads to a decrease in demand for the other, so cross elasticity is negative.
Explanation:
Fiscal consolidation involves measures to reduce the fiscal deficit and put government debt on a sustainable path through a combination of revenue and expenditure reforms.
Explanation:
The Solow residual is the part of output growth that remains after accounting for the contributions of capital and labour inputs; it is commonly interpreted as a measure of total factor productivity growth.
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