Which of the following is most likely to result from a rising household debt/income ratio?
a. Household income will rise rapidly.
b. Household consumption will fall as a share of income.
c. Households will be in a better position to deal with unexpected events that force major adjustments.
d. A larger share of household income will be required to meet interest payments on debt.
D
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During a boom, the actual rate of unemployment will be
What will be an ideal response?
Concluding that a company is in violation of antitrust laws because it controls over 90 percent of the market is an application of judgment by:
A. comparative advantage. B. performance. C. design. D. structure.
A cut in tax rates effects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and ________ the size of the multiplier effect
A) decreasing; increasing B) decreasing; decreasing C) increasing; increasing D) increasing; decreasing
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm is currently along isocost CD. If the price of capital is $10, then the price of labor is
A. $10. B. $20. C. $80. D. indeterminate from this information.