In the standard 45-degree line expenditure model, the C + I line and the C line are parallel because,
a. all I is assumed to be autonomous.
b. all I is assumed to be induced.
c. consumption depends on disposable income.
d. I rises with GDP at the same rate as C.
a
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Since the 1970s, the United States has had higher unemployment rates than most European countries.
Answer the following statement true (T) or false (F)
Refer to Figure 6-11. What is the value of the price elasticity of supply between g and h?
A) 0.5 B) 2 C) 20 percent D) 0.02
Saving is often discouraged by usury laws during inflationary periods because
a. nominal rates of interest are kept above real rates of interest. b. nominal rates of interest are kept below inflation rates. c. nominal rates of interest are kept above inflation rates. d. real rates of interest are kept above inflation rates.
Use the marginal principle to explain why government mandated safety features in automobiles during the 1960s and 1970s resulted in an increase in collisions between automobiles and bicycles
What will be an ideal response?