The slope of the consumption function equals the marginal propensity to consume
a. true
b. false
a. true
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Why is persistent unemployment a possibility in the Keynesian model but NOT in the classical model?
A) The Keynesian model assumes that people work for motives other than those of earning an income for themselves and supporting a family. B) The Keynesian model assumes that workers can lose their jobs to foreign competition during economic downturns. C) The Keynesian model assumes that the level of real GDP is inflexible. D) The Keynesian model assumes that nominal wages are inflexible downward.
The portion of the GDP that takes the form of consumer goods and services is approximately
a. one-fourth. b. one-third. c. one-half. d. seven-tenths.
Ceteris paribus, if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes, then the price elasticity of supply is equal to _____
a. 2 b. 20 c. 10 d. 0.5 e. 0.2
Lately, the ratio of debt to GDP has been
a. rising at a small rate. b. rising steadily. c. falling modestly. d. staying constant.