Refer to the information provided in Figure 23.5 below to answer the question(s) that follow.
Figure 23.5Refer to Figure 23.5. If aggregate consumption is the only expenditure in this society, at an income level of $800 billion
A. saving is zero.
B. the economy is in equilibrium.
C. consumption equals income.
D. all of the above.
Answer: D
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When inflation expectations changed during the 1967-1971 period, this change led to
A) the short-run Phillips curve shifting upward. B) the short-run and the long-run Phillips curve both shifting upward. C) an increase in the natural unemployment rate. D) the long-run Phillips curve shifting leftward. E) the long-run Phillips curve shifting rightward.
Explain the differences between "human capital," "financial capital," and "capital."
What will be an ideal response?
Income in the form of goods and services is
A) known as money income. B) known as income in kind. C) not considered income by economists. D) not part of wealth.
If a car salesman is paid a commission on the sale value of the car, the owner is most likely to see
a. Large margins on sales b. Low margins on sales c. No sales d. None of the above