Suppose there is an increase in autonomous consumption. Specifically, suppose c0 increases where C = c0 + c1YD. This increase in autonomous consumption will cause which of the following to increase?
A) equilibrium income
B) equilibrium disposable income
C) demand
D) all of the above
E) none of the above
D
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A liquid asset is
A) an asset that can easily and quickly be sold to raise cash. B) a share of an ocean resort. C) difficult to resell. D) always sold in an over-the-counter market.
When you are working, you pay more unemployment insurance than you get from it and when you're unemployed, you get more from it than you pay in. That's why the insurance is called
a. an automatic stabilizer b. an automatic destabilizer c. a discretionary stabilizer d. a destabilizing influence on the Phillips curve e. a stabilizing influence on the Phillips curve
Usury laws are associated with
A. rent. B. interest. C. wages. D. profits.
Figure 14-5
In , AD1 and SRAS1 indicate an economy initially operating at full-employment output level, Y1. The short-run impact of the Fed unexpectedly shifting to a more restrictive monetary policy will be
a.
a decrease in aggregate demand to AD2 and a decrease in real output to Y2.
b.
a decrease in aggregate demand to AD2 but real output would remain at Y1.
c.
a decrease in aggregate demand to AD2 and an increase in short-run aggregate supply to SRAS2, causing the price level to fall to P3 and real output to remain unchanged at Y1.
d.
no change; AD and SRAS will stay at AD1 and SRAS1.