If we assume that government expenditure, investment, and net exports are not affected by income, the slope of the consumption function equals
A. The change in income divided by the change in consumption.
B. APC.
C. APS.
D. The slope of the aggregate expenditure curve.
Answer: D
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If we use GDP to measure our standard of living, then our procedure is
A) accurate because our standard of living depends solely on goods and services. B) inaccurate because our standard of living only depends on used goods and services. C) inaccurate because our standard of living does not depend only on goods and services. D) inaccurate because our standard of living has nothing to do with goods and services. E) accurate only if we use nominal GDP rather than real GDP.
Charging firms that emit pollutants is one way to deal with pollution
a. True b. False Indicate whether the statement is true or false
Marginal cost equals
A. TC/Q. B. TVC/Q. C. TFC/Q. D. change in total cost/change in output.
The Lucas supply function, real business cycle theory, and the new Keynesian model all assume rational expectations.
Answer the following statement true (T) or false (F)