Because a decrease in real autonomous spending results in a ________ in the price level, the ultimate effect on real GDP is ________ than predicted by the multiplier.
A. fall; smaller
B. rise; larger
C. rise; smaller
D. fall; larger
Answer: A
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The PIA is generated with a formula such that
A. high-income earners receive the same as low-income earners. B. high-income earners receive less than low-income earners. C. higher-income earners receive more money but a lower proportion of their AIME than lower-income. D. higher-income earners receive the same proportion of AIMA as low-income earners.
The law of diminishing marginal utility holds that at some point consumption of additional units of a commodity adds less to total utility.
Answer the following statement true (T) or false (F)
When there is a surplus in the market, the quantity sold is
A) equal to the quantity supplied. B) equal to the quantity demanded. C) less than the quantity demanded. D) greater than the quantity bought.
According to the principle of diminishing marginal utility, as an individual consumes more and more of a good or service, the total utility increases while the marginal utility decreases
Indicate whether the statement is true or false