If Ap is total autonomous planned spending, c is the marginal propensity to consume, s is the marginal propensity to save, and Y is the equilibrium income level, then
A) Ap/Y.
B) Y = Ap/s.
C) sY.
D) cAp.
B
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In order for a barter transaction to be successful, there must be a
A) federal tax law in effect. B) high demand for a certain item. C) market for the goods. D) double coincidence of wants.
A monopolistically competitive firm differs from a perfectly competitive firm in that a monopolistically competitive firm: a. faces a downward-sloping demand curve for its product
b. faces a horizontal demand curve at the market-clearing price. c. is able to earn profits in the long run. d. faces virtually no barriers to entry.
If the market mechanism is efficient, the marginal cost accurately measures the opportunity cost of a good or service.
Answer the following statement true (T) or false (F)
If actual inflation differs from expected inflation, what is the slope of the Phillips curve?
A. The slope is horizontal in the short and long run. B. The slope is upward sloping in the short run and vertical in the long run. C. The slope is vertical in the short run and upward sloping in the long run. D. The slope is downward sloping in the short run and vertical in the long run.