The relationship between consumption and disposable income is such that as
a. consumption rises, disposable income falls.
b. disposable income rises, consumption rises.
c. disposable income rises, consumption falls.
d. disposable income rises, saving falls.
b
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Along any downward sloping straight-line demand curve:
A) both the price elasticity and slope vary. B) the price elasticity varies, but the slope is constant. C) the slope varies, but the price elasticity is constant. D) both the price elasticity and slope are constant.
Using the income approach, the smallest component in the calculation of GDP is:
a. net interest. b. rental income. c. profits. d. compensation of employees.
If the economy were left on its own without the interference of government or the Fed, it would move toward an equilibrium rate of growth that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. Classical. b. Keynesian. c. Monetarism. d. Supply-side. e. Neo-Keynesian.
Which statement about the U.S. poverty line is true?
a. The poverty line is adjusted for the value of food aid. b. The poverty line is based on cash income. c. The poverty line varies from state to state. d. The poverty line fluctuates with Medicaid claims.