The idea that MPCs are different in different stages of a person's life is called
a. Keynes's absolute income hypothesis
b. Duesenberry's relative income hypothesis
c. Friedman's permanent income hypothesis
d. the life-cycle hypothesis of consumption
e. the consumption function
D
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Free trade refers to the ability:
A) of the developing countries to make payments for imports of goods at the end of every year. B) to trade without hindrance or encouragement from the government. C) of the developed countries to set the world prices of most goods and services. D) of the developed countries to provide financial aid to the developing nations.
A country's gross national product (GNP) is
A) the value of all final goods and services produced by its factors of production and sold on the market in a given time period. B) the value of all intermediate goods and services produced by its factors of production and sold on the market in a given time period. C) the value of all final goods produced by its factors of production and sold on the market in a given time period. D) the value of all final goods and services produced by its factors of production and sold on the market. E) the value of all final goods and services produced by its factors of production, excluding land, and sold on the market in a given time period.
Refer to the above figure. Which point or points represent(s) a short-run equilibrium?
A) A only B) B only C) C only D) both A and B
The total quantities of goods and services that firms in the economy are willing to supply at varying price levels is
a. aggregate production b. total production c. aggregate supply d. gross domestic product e. natural total production