The short-run consumption curve may shift upward over the long run largely because
a. people become wealthier
b. the marginal propensity to save increases
c. the 45-degree line becomes a 90-degree line
d. the demand curve for investment is upward sloping
e. economic growth, although still positive, slows down
A
You might also like to view...
On most days the price of a rose is $1 and 80 roses are purchased. On Valentine's Day the demand increases so that the price of a rose rises to $2 and 320 roses are purchased. Therefore, the price elasticity of
A) demand for roses is about 1.8. B) demand for roses is about 0.55. C) supply of roses is about 1.8. D) supply of roses is about 0.55.
The gross domestic product (GDP) excludes: a. the increase in inventories during a given period
b. the expenditures by government for newly produced goods and services during a given period. c. the value of intermediate goods produced in an economy during a given period. d. the value of final output during a given period. e. household expenditure on durable goods.
For the output maximizing monopolist
A. long-run marginal cost equals demand. B. marginal revenue equals marginal cost. C. price equals average total cost. D. average total cost must be falling.
If consumption equals 10, investment equals 8, government purchases equal 7, exports equal 5 and imports equal 3, what is the GDP?
a. 11 b. 13 c. 25 d. 27