Refer to the given data. A $2 billion increase in consumption at each level of DI could be caused by:
Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
A. a decrease in consumer wealth.
B. new expectations of higher future income.
C. an increase in taxation.
D. an increase in saving.
B. new expectations of higher future income.
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In the fall of 2012, more than three years after the end of the recession, the unemployment rate remained just below 8% and nearly half of the unemployed had been out of work for at least six months
Unemployment had been so high for so long, that many economists had begun speaking of the "new normal", in which unemployment rates might be stuck at higher levels for many years. If this "new normal" does materialize, these higher unemployment rates would most likely be the result of ________ unemployment. A) frictional B) cyclical C) structural D) seasonal
In economic terminology, when a resource is used to produce output it is referred to as
A) an intangible. B) a factor of production. C) a service. D) a fifth element.
For a particular good, a 3 percent increase in price causes a 10 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. The relevant time horizon is short. b. The good is a necessity. c. The market for the good is broadly defined. d. There are many close substitutes for this good.
Which of the following is most likely to reduce the incidence of employee shirking?
a. use of the corporate business structure, rather than an individual proprietorship b. closely relating the pay of workers to their productive contribution c. payment of identical wage rates to all workers d. providing workers with a year-end bonus if the business firm loses money during the year