Define the "consumption function."
What will be an ideal response?
The consumption function represents the relationship between consumer spending and income.
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Both classicals and Keynesians agree that policymakers
A) can exploit the Phillips curve in the short run. B) cannot exploit the Phillips curve in the short run. C) can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. D) cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
Identify which of the following people would be considered either employed, unemployed, or not in the labor force:
a. Alejandro just lost his job at an automobile assembly plant and is looking for work in another industry. b. Bonnie quit her job 6 months ago to take care of her newborn triplets. c. Cheyenne just received her bachelor's degree in accounting and is going to backpack through Europe for 6 months before seeking employment as an auditor. d. Danitra owns a talent agency which provides clowns for children's birthday parties. e. Edgar is a full-time student and is working 10 hours each week as a lab assistant at Faber College. f. Flavio was awarded a $10 million settlement from his former employer and has chosen to retire.
The work of Robert Lucas and Thomas Sargent ________ the existence of a downward-sloping Phillips Curve in the ________
A) first proposed, short run B) first proposed, short and long runs C) cast further doubt on, long but not short run D) cast further doubt on, short and long runs
If American consumers decided to boycott grapes to protest working conditions of farm workers, everything else being equal, the: a. price of grapes will rise
b. supply of grapes will fall. c. quantity of grapes supplied will fall. d. demand curve for grapes shifts to the right.