Briefly explain what you would expect to see happen to spending on health care over time, with health care being considered as a normal good
What will be an ideal response?
With a normal good, as income increases, spending on the good also increases. Since income levels tend to increase over time, you should expect to see spending on health care increase over time.
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Use the following consumption schedule for an economy to answer the next question. All figures are in billions of dollars.RGDPConsumption$440$450490490540530590570640610If a government sector is introduced and a lump-sum tax of $30 billion is imposed at all levels of real GDP, then the values in the consumption column become
A. $426, $466, $506, $546, $586. B. $420, $460, $500, $540, $580. C. $432, $472, $512, $552, $592. D. $430, $470, $510, $550, $590.
Given the total cost function TC = 100 + 40Q - 15Q2 + 5Q3, calculate the
a. average fixed cost function (AFC) b. average variable cost function (AVC) c. marginal cost function (MC)
Economists began to lose confidence in the Phillips curve during the:
a. 1930s. b. 1960s. c. 1970s. d. 1980s. e. 1990s.
If employees and employers always accurately predict inflation, what is the shape of the Phillips curve?
a. It is horizontal in the short and long run. b. It is vertical in the short and long run. c. It is vertical in the short run and upward sloping in the long run. d. It is downward sloping in the short run and vertical in the long run.