A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If the transaction is completed at $510,000 . what level of tax rate will result in unconsummated transaction?
a. 1%
b. 5%
c. 3%
d. 2%
b
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The traditional Keynesian approach concludes that an increase in government spending
A) generates a greater increase in investment spending. B) generates a greater increase in total spending because consumption spending increases as incomes increase. C) has no effect on total spending because consumers increase saving by an equal amount. D) generates an equal increase in total spending because government spending makes up part of total spending.
Refer to the above figure. Which variable is autonomous with respect to real GDP?
A) real consumption spending B) the sum of real consumption and real saving C) real saving D) real investment spending
If the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP
Indicate whether the statement is true or false
The demand curve facing a perfectly competitive firm is: a. perfectly inelastic. b. perfectly elastic
c. unit elastic. d. downward sloping.