In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is
A) $0.
B) $20,000.
C) $35.000.
D) $60,000.
B
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, what is the rent?
A) $800 B) $600 C) $400 D) None of the above answers is correct.
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200, where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner. What is the coal mine's marginal expenditure function?
A. ME = 50Q + 10,000 B. ME = 100Q + 10,000 C. ME = 200Q + 500 D. ME = 250Q + 500
A change in the ________ leads to a change in demand that causes a ________.
A. price of other goods; movement along the demand curve B. price of the original product; shift of the demand curve and a movement along the new demand curve C. price of the original product; shift of the demand curve D. price of other goods; shift in the demand curve