Define induced expenditure and autonomous expenditure. Which expenditure items are induced expenditure and which are autonomous expenditure?
What will be an ideal response?
Induced expenditure is aggregate expenditure that changes as real GDP changes. Consumption expenditure and imports respond to changes in real GDP, so they have induced components. Autonomous expenditure is aggregate expenditure that does not change as real GDP changes. Investment, government expenditure, and exports are autonomous expenditure. Consumption expenditure also has an autonomous component.
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Why are lump-sum taxes regressive in nature?
What will be an ideal response?
What are the two components of a firm's total cost in the short run, and what are their definitions?
What will be an ideal response?
Given an annual interest rate of 12 percent, what is the present value of receiving $1,000 in 20 years?
A) $890.45 B) $850.23 C) $112.16 D) $103.67
The first step in gradualism is
a. the privatization of larger industrial sectors b. the phasing out of money-losing enterprises c. large industrial enterprises quickly finding market-clearing prices d. the thriving of small-scale capitalism e. state-owned enterprises running more like businesses to maximize profit