What are the five main determinants of consumption spending? Which of these is the most important?
What will be an ideal response?
The five main determinants of consumption spending are current disposable income, household wealth, expected future income, the price level, and the interest rate. The most important determinant is current disposable income.
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Compared to a competitive market, a firm that has a monopsony in a labor market would
A) hire fewer workers and pay higher wages. B) hire more workers and pay higher wages. C) hire more workers and pay lower wages. D) hire fewer workers and pay lower wages.
Which of the following does NOT lead to an increase in potential GDP?
A) labor force grows B) technological change takes place C) new machinery and equipment are installed D) aggregate expenditures increase
A profit-maximizing monopolist will never produce on the elastic segment of its demand curve
Indicate whether the statement is true or false
The voting outcome and the most preferred outcome of the median voter are the same in a simple majority vote where there are several options from which to choose
Indicate whether the statement is true or false