Ceteris paribus, if income was transferred from individuals with a low MPC to those with a high MPC, aggregate demand would

A. Stay the same.
B. Decrease.
C. Increase.
D. Increase or decrease, but not because of the MPC.


Answer: C

Economics

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The process whereby votes are exchanged to gain support for legislation is referred to as

A) logrolling. B) rational ignorance. C) simple majority voting. D) special interest voting. E) a and d

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Explain how potential gains from further reductions in tariff levels are different from the gains of the past

What will be an ideal response?

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Refer to the diagram. If aggregate supply is AS 1 and aggregate demand is AD 0 , then:



A.  at any price level above G a shortage of real output would occur.
B.  F represents a price level that would result in a surplus of real output of AC.
C.  a surplus of real output of GH would occur.
D.  F represents a price level that would result in a shortage of real output of AC.

Economics