You have observed a consumer who purchases only goods 
and 
and have concluded that the consumer's tastes are quasilinear in 
. Whether
the consumer purchases more or less of 
when the price of 
falls then depends on the size of the substitution effect.
Answer the following statement true (T) or false (F)
False
Rationale:
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One of the major chains of causation in macroeconomic policymaking is government manipulation of ________ in order to affect ________, and thus ultimately ________
A) the money supply, the interest rate, equilibrium income B) the money supply, equilibrium income, the interest rate C) the interest rate, equilibrium income, the money supply D) equilibrium income, the interest rate, the money supply E) equilibrium income, the money supply, the interest rate
Which of the following about Social Security is true?
a. Labor participation tends to increase as spousal earnings increase. b. Social Security works to the disadvantage of low-wage workers due to their shorter life expectancy. c. Low-wage workers derive a higher rate of return from their Social Security taxes than high-wage workers. d. High-wage workers generally begin full-time work at younger ages than low-wage workers.
On this graph, what would be the price level when RGDP demanded equal $17 trillion?
a. 90
b. 95
c. 100
d. 105
How can governments intervene in trade?
A. by producing cheaper products B. by helping reduce economic uncertainty C. by not buying products from competing countries D. All of these