The marginal propensity to consume (MPC) is the change in consumption divided by the change in disposable personal income
a. True
b. False
Indicate whether the statement is true or false
True
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Firms use collective bargaining to set higher market prices for their products.
Answer the following statement true (T) or false (F)
A depression can be defined as: a. a mild reduction in total production coupled with a rising unemployment rate that lasts for several years. b. a mild decline in total production that lasts less than six months
c. a severe fall in stock prices that causes financial panic and lasts for several years. d. a severe reduction in total production coupled with high unemployment that lasts for several years. e. a decline in government spending and taxes that lasts for several months.
Monetarists believe that velocity
A) is constant. B) changes erratically. C) and the money supply always have an inverse relationship. D) changes in a way that can be understood and predicted.
Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of pollution abatement are normally shaped. Technological change that made it easier to produce in a "cleaner" fashion would cause
A. curve (1) to shift out, increasing the optimal amount of pollution abatement. B. curve (3) to shift up, raising the marginal benefits and costs and reducing the amount of pollution abatement. C. curve (4) to shift out, increasing the optimal amount of pollution abatement. D. curve (2) to shift out, increasing the optimal amount of pollution abatement.