(Consider This) The ratchet effect is the tendency
A. the price level to increase but not to decrease.
B. nominal GDP to increase more rapidly than real GDP.
C. real interest rates to fall more rapidly than nominal interest rates.
D. consumption to rise year after year regardless of what happens to disposable income.
A. the price level to increase but not to decrease.
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The paradox of thrift explains that increased savings by households could actually lower savings for the economy as a whole
a. True b. False Indicate whether the statement is true or false
The diagram below shows the general equilibrium model for a small economy. For this economy, the economically efficient allocation of resources occurs at point 
A. B. B. C. C. D. D. A.
The demand for most agricultural goods is elastic. Consequently, an increase in supply will increase the total income of producers of agricultural goods.
Answer the following statement true (T) or false (F)
Labor productivity refers to the quantity of goods and services that can be produced
A) by the entire labor force. B) by one worker or one hour of work. C) in the entire economy in one year. D) by all employed workers.