An increase in income will
A. shift the budget constraint to the right.
B. make the budget constraint flatter.
C. make the budget constraint steeper.
D. make the budget constraint more bowed.
Answer: A
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The oversimplified multiplier formula assumes that the
A. level of consumption spending is fixed. B. price level is fixed. C. government spending is fixed. D. net exports depend on income.
Refer to Table 17-2. The marginal revenue product of labor from the third unit of labor is
A) $5,460. B) $1,560. C) $1,260. D) $780.
Economic profit is accounting profit minus the cost of capital
Indicate whether the statement is true or false
Which of the following would be most likely to cause the short-run aggregate supply curve to shift left?
A) A reduction in oil prices due to increased drilling. B) A decrease in investor confidence. C) A rise in government spending. D) A spike in food prices due to a drought.