Answer the following statements true (T) or false (F)
1. The hoped-for effect of the tax rebate of 2008 was an increase in aggregate supply.
2. The tax rebate approach is, by itself, an example of pump priming.
3. A deflation is a slowdown in the rate of inflation.
4. Cost-push inflation originates on the supply side of the economy.
5. Stagflation suggests a rate of inflation near zero.
6. If the expected inflation rate declines, the short-run Phillips curve shifts downward.
7. Deflation and disinflation are synonymous terms.
8. Debtors tend to benefit more from inflation than creditors do.
9. Crowding out occurs when unemployment compensation increases and income taxes are held constant.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
6. TRUE
7. FALSE
8. TRUE
9. FALSE
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If the marginal propensity to save is 0.25, then a $10,000 decrease in disposable income will
A) increase consumption by $7,500. B) decrease consumption by $2,500. C) increase consumption by $2,500. D) decrease consumption by $7,500.
Purchasing power parity exchange rates can be useful for making comparisons between countries, such as international comparisons of GDP and other economic statistics
a. True b. False Indicate whether the statement is true or false
An aggregate is a collection of ___________.
a. general economics units treated as many units b. specific economic units treated as if they were one unit c. specific economic units treated as if they were many units d. general economic units treated as if they were one unit
All of the following are reasons for economies of scale EXCEPT
A. specialization. B. dimensional factors. C. diminishing marginal product. D. more efficient production equipment.