APC is equal to
A. The change in total saving divided by the change in total disposable income.
B. Total consumption divided by total disposable income.
C. Total saving divided by total disposable income.
D. The change in total consumption divided by the change in total disposable income.
Answer: B
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Suppose there is an increase in the money supply, but that people's demand for money balances increases by a greater amount at the same time. The net effect would be
A) lower interest rates, greater real GDP, and a higher price level as aggregate demand increases because of the indirect effect of the increase in the money supply. B) no change in aggregate demand or aggregate supply. C) a lower price level in the long run. D) an increase in aggregate demand due to the increase in the money supply, but a decrease in aggregate supply due to the increase in the demand for money.
Which of the following increases total factor productivity?
A) investment in machinery B) a harsh winter C) better access to credit D) new production procedures
Figure 9-4
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In Figure 9-4, which expenditure level will result in a recessionary gap?
A. 1 B. 2 C. 3 D. There will be no deflationary gap.
Love Canal was declared a disaster area by
a. the State of California b. President Reagan c. President Carter d. the Department of Justice