After a shift in the aggregate demand curve, which variable adjusts to restore general equilibrium?
A. Consumption spending
B. Price level
C. Investment spending
D. Real interest rate
Answer: B
Economics
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The ratio of a change in consumption to a change in income is the:
a. consumption function. b. propensity to consume. c. average propensity to consume. d. extra propensity to consume. e. marginal propensity to consume.
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The federal government funds deficit spending by: a. issuing bonds
b. redeeming bonds. c. increasing taxes. d. providing and selling government services.
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Which of the following is an example of a monopolistically competitive firm?
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