Typically, consumers respond to an increase in (expected) future income by ________
A) shifting the budget constraint to the left
B) increasing both current and future consumption
C) saving more to increase future wealth
D) waiting until the income is received before changing their consumption behavior
B
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If a nation's population grows at 2 percent and its real GDP grows at 4 percent, what is the growth rate of real GDP per person?
What will be an ideal response?
Refer to Figure 8.1. Holding other variables constant, a decrease in the capital stock will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.
"According to Keynes, the economy is essentially a self-regulating system." Do you agree or disagree? Why?
What will be an ideal response?
What is the underground economy? How does it affect GDP calculations? Provide three examples of underground economy transactions