Assume that autonomous consumption equals $200 and disposable income equals $1000. If total consumption equal $800, then the mpc equals
A) 0.2.
B) 0.6.
C) 0.8.
D) 1.0.
B
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Hummel is a line of figurines based on the artistic style of German nun Maria Innocentia Hummel and have become a collector's item. The Hummel figurines are almost uniformly "cute
" Lukas, Felix, Anya, and Hannah sell Hummel figurines through the internet. Their willingness to sell price for one figurine is: Lukas $240, Felix $180, Anya $150, Hannah $130. Suppose the price of a Hummel figurine is $150, who will sell their figurine? A) Anya and Hannah B) Lukas, Felix, and Anya C) Felix, Anya, and Hannah D) Hannah
What was suggested by Keynes to move the economy out of a depressed state?
a. The invisible hand b. The price mechanism c. Monetary and fiscal policy d. Zero government intervention
A price level increase tends to reduce net exports, thereby reducing the amount of real goods and services purchased in the United States. Economists refer to this phenomenon as
A. the open-economy effect. B. the barrier effect. C. the wealth effect. D. the Gross Domestic Product (GDP) effect.
What are the four major areas in which macroeconomists work? Give an example of a job in each.
What will be an ideal response?