According to the Keynesian macroeconomic model, consumption is a function of which three variables?
Select one:
a. a) Autonomous consumption, intended investment, and the marginal propensity to consume
b. b) Autonomous consumption, the marginal propensity to consume, and income
c. c) Autonomous consumption, actual investment, and the marginal propensity to consume
d. d) The marginal propensity to consume, income, and intended investment
b. b) Autonomous consumption, the marginal propensity to consume, and income
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When does a price searcher's marginal revenue curve lie below its demand curve?
A) At all times, since this is the definition of a price searcher B) When it cannot confine price reductions to the new sales it's trying to attract by lowering its price C) When it is producing more than the net revenue maximizing quantity D) When its marginal cost curve is rising E) When the demand curve slopes downward to the right
Nominal GDP is equal to real GDP multiplied by the GDP deflator
Indicate whether the statement is true or false
Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
A. A decrease in demand B. A decrease in supply C. An increase in demand D. An increase in supply
If a firm lowered the price of the product it sells and found that total revenue did not change, then the demand for its product is
A) perfectly inelastic. B) relatively elastic. C) perfectly elastic. D) unit elastic.