The relationship between consumer spending and income is known as the:
A. rate of income.
B. consumption function.
C. inflation rate.
D. rate of individual wealth.
Answer: B
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The demand for money that households keep for emergency purposes is known as the
A specialized worker doesn't spend time switching from one task to another. This source of productivity increase is called
A) functionality. B) continuity. C) innovation. D) repetition.
You are given the following information on the macroeconomy (in millions dollars):
Consumption: 250 + 0.50Y Investment: 100 + 0.10Y Government Spending 400 Exports 50 Imports 50 + 0.25Y Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for a decrease in autonomous investment of $75 million.
The household and establishment surveys sometimes differ on the labor market conditions. This is probably because ________
A) the establishment survey counts a worker who holds two jobs twice and the household survey does not B) the establishment survey only counts employees of a company and the household survey also counts the self employed C) the establishment survey covers more workers than the household survey D) all of the above E) none of the above