An increase in the government's budget deficit ________ the real interest rate and ________ the equilibrium quantity of national saving.
A. decreases; increases
B. increases; increases
C. increases; decreases
D. decreases; decreases
Answer: C
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Refer to the market diagram. Of the surplus that consumers lose because there is a monopoly (and not perfect competition), how much is lost to the monopoly itself?
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. Area C + D
b. Area E + H
c. Area A + B
d. Area C + D + E
The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from
A) D0 to D1. B) D1 to D0. C) S0 to S1. D) S1 to S0.
A decrease in disposable income will:
a. shift the consumption function upward b. shift the consumption function downward. c. cause an upward movement along the consumption function. d. cause a downward movement along the consumption function. e. make the consumption function flatter.
The unemployment rate is the
A. ratio of unemployed to employed workers. B. number of employed workers minus the number of workers who are not in the labor force. C. percentage of the civilian labor force which is out of work. D. percentage of the total population which is out of work.