The existence of an inflationary gap or an recessionary gap depends on the
a. aggregate supply only.
b. expenditure schedule.
c. leakages schedule.
d. injections schedule.
e. aggregate demand and aggregate supply schedules.
e
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Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k. For a consumer with exogenous income operating in a 2-good world, this will cause the budget constraint to
A. rotate inward B. rotate outward C. shift out in a parallel way D. shift inward in a parallel way E. none of the above
Although a balanced budget may be appropriate under one monetary policy, a deficit or surplus may be appropriate under a different monetary policy
a. True b. False Indicate whether the statement is true or false
Which of the following is true?
a. About one-third of millionaires have college degrees. b. The percentage of the population that are millionaires in inflation-adjusted dollars has been stable since the 1970s. c. More than 75 percent of American millionaires have college degrees. d. The majority of millionaires received most of their wealth through an inheritance
The amount by which consumption increases when after-tax income increases by $1 is called the:
A. marginal propensity to consume. B. consumption multiplier effect. C. marginal consumption revenue. D. variable propensity to consume.