As the period for firms to expand output is lengthened, the elasticity of the market supply curve will:
a. approach zero.
b. increase.
c. decrease.
d. remain the same since time does not affect the elasticity of market supply.
b
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Data on after-tax income and consumption spending for the Smith family are given in the table below.After-tax IncomeConsumption Spending$9,000$18,10014,00022,60019,00027,10024,00031,600Based on these data, the Smith family has a marginal propensity to consume of
A. 0.75. B. 0.8. C. 0.6. D. 0.9.
Aggregate demand ________ and shifts the AD curve ________ when ________
A) increases; rightward; government expenditure increases B) increases; leftward; government expenditure increases C) decreases; leftward; foreign income increases D) increases; rightward; future expected profit decreases E) increases; rightward; taxes increase
The above (incomplete) table provides information about the relationships between output and various cost measures. The marginal cost per unit when increasing output from 14 to 17 units is
A) $20. B) $30. C) $380. D) None of the above answers is correct.
Carefully define the following terms and explain their importance in the study of macroeconomics:
a. expenditure schedule b. saving schedule c. equilibrium GDP d. leakages schedule e. injections schedule