Gordon characterizes Modigliani as a prominent activist yet several implications of his life cycle hypothesis support the non-activists. One of these implications is
A) transitory increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively stable.
B) permanent increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively stable.
C) transitory increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively unstable.
D) transitory increases in income associated with the business cycle are to last a lifetime so current consumption is relatively stable.
A
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A monopolistically competitive firm has a
A. highly elastic demand curve. B. highly inelastic demand curve. C. perfectly elastic demand curve. D. perfectly inelastic demand curve.
The lending ability of commercial banks increases when the ________.
A. discount rate is raised B. Fed buys securities in the open market C. Treasury collects tax revenues D. reserve requirement is raised
A production possibilities curve that is "bowed out" or concave to the origin:
a. illustrates a tradeoff in which the opportunity cost of a good increases with the level of its production. b. illustrates a tradeoff in which the opportunity cost of a good decreases with the level of its production. c. illustrates a tradeoff in which the opportunity cost of a good is constant at all levels of production. d. demonstrates the fallacy of composition.
If employees lose jobs because their skills are obsolete, or their company has moved to another location, this is called:
a. frictional unemployment b. cyclical unemployment c. structural unemployment d. seasonal unemployment