_____ is the primary determinant of consumption and is usually measured in terms of current disposable income
a. Household income
b. Wealth
c. Expectation
d. Interest rate
e. Tax liability
a
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What type of business has the potential for double taxation of profits and why?
What will be an ideal response?
John Maynard Keynes believed that the equilibrium level of national income is primarily determined by aggregate expenditures
Indicate whether the statement is true or false
In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel. This was primarily a response to the economic question of:
A) When will each good be produced? B) For whom shall the goods be produced? C) What goods and services should a society produce? D) How should goods and services be produced?
Exhibit 17-2 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-2, if people behave according to rational expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the price level to move:
A. directly from 100 to 105 and then remain at 105. B. directly from 100 to 110 and then remain at 110. C. from 100 to 105 initially and then eventually move back to 100. D. from 100 to 105 initially and then eventually move to 110.