The study by economists Cox and Alm found
a. inequality in consumption is much smaller than inequality in annual income.
b. inequality in consumption is slightly smaller than inequality in annual income.
c. inequality in consumption is slightly larger than inequality in annual income.
d. inequality in consumption is much larger than inequality in annual income.
a
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Prospect theory implies that individuals are risk loving over losses and risk averse over gains.
Answer the following statement true (T) or false (F)
Among the distinguishing characteristics of different types of markets are
a. the number of firms in an industry. b. the presence or absence of product differentiation. c. the ability of any or all firms in an industry to influence market price. d. All of these.
Which of the following correctly explains the crowding-out effect?
a) An increase in government expenditures decreases the interest rate and so increases investment spending. b) An increase in government expenditures increases the interest rate and so reduces investment spending. c) A decrease in government expenditures increases the interest rate and so increases investment spending. d) A decrease in government expenditures decrease the interest rate and so reduces investment spending.