If U.S. consumers become more optimistic about their future income and wealth, the consumption function will shift upward.
Answer the following statement true (T) or false (F)
True
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The total quantity of an economy's final goods and services demanded at different inflation rates is
A) the aggregate supply curve. B) the aggregate demand curve. C) the Phillips curve. D) the aggregate expenditure function.
The concept that suggests the consumption of the first few units of any good tends to bring a higher level of utility to a person than consumption of later units is the:
a. law of diminishing marginal utility. b. law of supply. c. law of demand. d. law of consumption.
Refer to the above graph. Which of the lines in the above diagram represent(s) a progressive tax?
A. Both A and B B. B only C. C only D. D only
Which of the following is an example of a transfer payment?
a. wages paid to military personnel
b. benefits paid to Social Security recipients
c. purchase of aircraft by the Department of Defense
d. payments made to a contractor for construction of a highway