The aggregate consumption function is C = 1,000 + 0.9Yd. If income is $3,600 and net taxes are $600, consumption equals
A. 2,400.
B. 3,400.
C. 3,700.
D. 4,000.
Answer: C
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For the study of economic growth, it is most helpful to examine movements in ________; for the study of business cycles, it is most helpful to examine movements in ________
A) trend GNP; trend GNP B) trend GNP; deviations from trend in GNP C) deviations from trend in GNP; trend GNP D) deviations from trend in GNP; deviations from trend in GNP
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Suppose that the government imposes an excise tax on widgets. The portion of the tax borne by the buyer of widgets depends upon
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