When the Lorenz curve lies above the diagonal,
a. the poorest 20 percent of the population receive more than 20 percent of income.
b. the richest 20 percent of the population receive more than 20 percent of income.
c. everyone receives the same income.
d. the country's income has been rising over time.
e. it is wrong since it is impossible for the graph to look like this.
e
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Refer to Figure 15-3. In the figure above, when the money supply shifts from MS1 to MS2, at the interest rate of 3 percent households and firms will
A) sell Treasury bills. B) want to hold more money. C) neither buy nor sell Treasury bills. D) buy Treasury bills.
You are the chairperson of the Board of Governors of the Federal Reserve. You believe in a Keynesian model of the economy, and your goal is to keep the economy at the full-employment level of output
How would you respond (tightening or easing policy) in each of the following cases? (a) Government purchases increase (b) Corporate tax rates increase (c) Expected inflation increases (d) There's a beneficial oil price shock (and the LM curve shifts more to the right than the FE line)
If the spending multiplier is greater than 1.0, a $200 billion increase in autonomous investment will cause: a. equilibrium investment to increase by less than $200 billion
b. equilibrium investment to decrease by more than $200 billion. c. equilibrium real GDP demanded to increase by more than $200 billion. d. equilibrium real GDP demanded to decrease by less than $200 billion. e. equilibrium saving to decrease by more than $200 billion.
If the price of film increases, the demand for film processing would decrease; moreover, the equilibrium price and quantity of film processing should also decrease
a. True b. False