A major employer in a small town announces upcoming major layoffs of employees. What should we expect to happen to the consumption functions of the affected employees?
a. the consumption functions will shift upward.
b. most employees will move upward along their consumption functions
c. the consumption functions will shift downward
d. most employees will move downward along their consumption functions
c
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The hypothesis suggesting that people combine the effects of past policy changes on economic variables with their own judgment about the future effects of current and future economic policy is referred to as the
A) passive expectations hypothesis. B) adaptive expectations hypothesis. C) rational expectations hypothesis. D) active expectations hypothesis.
Which of the following transactions would be included in Japan's current account?
A) A Japanese citizen purchases 50 shares of Google stock. B) An American citizen purchases a new Toyota made in Japan. C) A Japanese citizen purchases a new Toyota made in Japan. D) An American citizen purchases 50 shares of Toshiba stock.
The government's court case against Microsoft is an example of:
a. predatory pricing. b. antitrust enforcement. c. economic regulation. d. the regulatory dilemma.
The supply curve for milk
a. shifts when the price of milk changes because the price of milk is measured on the vertical axis of the graph. b. does not shift when the price of milk changes because the price of milk is measured on the vertical axis of the graph. c. does not shift when the price of milk changes because the price of milk is measured on the horizontal axis of the graph. d. shifts when the price of milk changes because the quantity supplied of milk is measured on the horizontal axis of the graph.