By the permanent-income hypothesis, for every dollar that actual income increases, consumption expenditure rises in the short run by ________ dollars
A) kj
B) k + j
C) k/j
D) k - j
E) j + (1/k)
A
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Which of the following is not a determinant of supply?
a. input prices b. technology c. tastes d. expectations
Political scientist Elinor Ostrom won the 2009 Nobel Prize in Economics for demonstrating in detail how communities around the world
a. experience gaps in wealth and economic power. b. manage common pool resources effectively. c. see power as the ability to collaborate.
A budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle is termed as budget finance
Indicate whether the statement is true or false
In the early 2000s, the number of Eastern Europeans moving to England to join the labor force increased. This has led to fears by British citizens that Eastern Europeans will steal jobs from Western Europeans. What best describes their fear?
A. Wages in Britain will fall since the supply of labor is increasing. B. Cost of living in Britain will increase as the demand for goods increases. C. Wages in Britain will fall as the demand for immigrants increases. D. Wages in Britain will fall since the quantity of labor supplied is increasing.