Refer to the information provided in Table 22.3 below to answer the question(s) that follow. Table 22.3 PointAggregate Income (Y)Aggregate Consumption (C) A 15 19 B 30 23 C 45 27 D 60 31 E 75 35 F 90 39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 22.3. Which of the following points is (are) the worst fit for the given consumption function?
A. A
B. D and F
C. E
D. F
Answer: A
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
The concept of marginal productivity is applicable to
a. all of the following b. capital c. entrepreneurial talent d. land e. labor
When the aggregate expenditures of a nation exceed its output, _____
a. the nation's inventories fall b. the government purchases of goods and services fall c. the nation's firms decide to decrease their level of production d. there will be an inflationary increase in the price level
Market demand
A. is the horizontal summation of the individual demand curves. B. shows how market purchases vary with price. C. slopes downward. D. both a and b E. all of the above