A decrease in government transfer payments
A) increases aggregate demand.
B) increases the aggregate quantity demanded.
C) decreases the aggregate quantity demanded.
D) decreases aggregate demand.
D
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Use the above table. What percentage of income is received by the poorest 20% of the population?
A) 20 percent B) 13.3 percent C) 11.1 percent D) 7.0 percent
Demand functions in the multiplicative form are most common for all of the following reasons except:
a. elasticities are constant over a range of data b. ease of estimation of elasticities c. exponents of parameters are the elasticities of those variables d. marginal impact of a unit change in an individual variable is constant e. c and d
The aggregate supply curve is:
A. the relationship between the overall price level and total production by firms. B. downward-sloping. C. the sum total of the production of all the firms in the economy for every given demand level. D. the sum total of the production of all the firms in the economy for every level of profit.
Buddy has $2000 in a checking account and wants to buy a new MacBook for $1100. Buddy decides he needs the money in his account to pay his bills next month and so puts the $1100 on his credit card and pays it off gradually over the next several months. Buddy choosing to "save" his cash on hand for everyday expenses is:
A. rational, since Buddy can now pay all his bills with a small credit card payment each month. B. going to make Buddy wealthier in the long run. C. rational, since he has his new computer and has money in the bank. D. irrational, since money is fungible.