The effect on short-run equilibrium output of a one-unit increase in expenditure is called:
A. the income-expenditure multiplier.
B. Say's law.
C. the marginal propensity to consume.
D. average labor productivity.
Answer: A
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Who would be the most in favor of restricting entry or exit into a market?
A. Producers, to keep costs down B. Consumers, to keep the price down C. Producers, to keep competition down D. Consumers, to keep profits down
Some early forms of money, like commodity money, did not survive because
A) they were outlawed. B) quality control was difficult. C) people disagreed on which good to use. D) paper quality was poor.
In the classical model, less consumption and more savings would
a. increase aggregate supply and output. b. reduces aggregate demand and output.. c. decrease real interest rates and output. d. cause the price level to rise with no effect on output. e. have no effect on output or the price level.
Explain why high priced lawyers may support an industry ban on price advertising for lawyers
What will be an ideal response?