The marginal propensity to consume (MPC) is the change in consumption divided by the change in saving
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Use the following graph to answer the next question.
If aggregate supply shifts from AS1 to AS2, then the price level will ________.
A. decrease and real domestic output will increase B. decrease and real domestic output will decrease C. increase and real domestic output will increase D. increase and real domestic output will decrease
A change in government purchases has the greatest effect on the economy in the short run when _____. a. the aggregate demand curve is relatively flat
b. the aggregate demand curve is relatively steep. c. the short-run aggregate supply curve is relatively flat. d. the aggregate demand curve is vertical. e. the short-run aggregate supply curve is vertical.
Since World War II, with the exception of the late 1990s, the governments of most developed countries have
a) run budget surpluses b) repaid their national debts c) run budget deficits in times of recession d) kept their budgets balanced e) been net lenders in times of recession
If a firm's total revenue is less than its variable cost when the firm produces the level of output at which price equals marginal cost, then the firm should:
A. shut down. B. not change its level of output even if it's earning an economic loss in the short run. C. produce more so that its total revenue increases. D. purchase more fixed factors of production.