How much is the APS?
C = $6.4 trillion
Disposable income = $8 trillion
Autonomous consumption = $4 trillion
APS = $1.6 trillion/$8 trillion = .2
You might also like to view...
Which of the following is most likely to restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) Devaluation of the domestic currency B) A decrease in the demand for goods and services in the economy C) A decrease in investment in the economy D) An increase in the interest rate
If the Federal Reserve purchases government securities,
A) banks' reserves will increase. B) the federal funds rate will rise. C) the discount rate will be forced higher. D) None of the above answers is correct because none of the effects occur.
Suppose that the federal government grants a 50 cent per gallon subsidy to buyers of gasoline and that the demand for gasoline is highly inelastic while the supply is highly elastic. Under these circumstances, the benefit of the subsidy
a. will go primarily to producers. b. will go primarily to consumers. c. will be split equally between consumers and producers. d. cannot be determined because the actual benefit of a subsidy is not influenced by the elasticities of supply and demand.
Which of the following is not associated with an adverse supply shock?
a. the short-run Phillips curve shifts left b. unemployment rises c. the price level rises d. output falls