An increase in autonomous consumption, an increase in disposable income, or a decrease in the marginal propensity to consume can all increase consumption
Indicate whether the statement is true or false
False
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Changes in business inventories are not considered part of gross private domestic investment spending
Indicate whether the statement is true or false
Incrementalism makes sense from a politician's perspective, because _____
a. it keeps all government employees happy b. it eliminates the cost of preparing a budget c. it maximizes political support by giving all special interests something d. they want to be seen in favor of bigger government
In a franchising relationship
a. the franchisor is the local businessman or businesswoman b. the corporate brand owner contracting with local operator is the franchisor c. the local operators are the franchisors d. the corporate brand owner contracting with local operators is the franchisee
Starting from short-run equilibrium, the following occurs: the U.S. dollar depreciates and wage rates rise. Moreover, the effect on the economy from the dollar depreciating is stronger than the effect on the economy from rising wage rates.What is the effect on the price level and Real GDP in the short run?
A) The price level falls and Real GDP falls. B) The price level rises and Real GDP falls. C) The price level falls and Real GDP rises. D) The price level rises and Real GDP rises. E) none of the above