An increase in the marginal propensity to consume will:
a) Lead to the consumption function becoming steeper
b) Shift the consumption function upwards
c) Shift the consumption function downwards
d) Shift the savings function upwards
Answer: a) Lead to the consumption function becoming steeper
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The long-run aggregate supply curve is vertical because
A) the economy has yet to use all its available resources. B) the economy has reached its potential real Gross Domestic Product (GDP) and is at full employment. C) the economy has contracted. D) the economy has large numbers of unemployed.
Which of the following has the greatest effect on the rate of seasonal unemployment?
a. inflation b. lack of skills c. lack of information d. weather
The employment rate is
A. one minus the unemployment rate. B. one plus the unemployment rate. C. the difference between the number of people in the labor force and the number of people unemployed. D. the ratio of the labor force to the number of people employed.
From 1999 to 2007, U.S exports to Mexico grew each year by approximately
A. 2.7%. B. 0.5%. C. 8.1%. D. 12.7%.