How much is the APC when disposable income is $10 billion?
$12 billion/$10 billion = 12/10 = 1.2
You might also like to view...
At the socially optimal equilibrium, _____
a. social cost exceeds private cost b. a market is allocatively efficient c. the marginal private cost of a given level of output is equal to the marginal social benefit d. the marginal private cost of a given level of output is greater than the marginal social benefit
The prevailing budget philosophy prior to Keynes called for a balanced budget. Keynes argued that the government should not balance its budget but instead have budget deficits during
a. economic booms. b. during periods of peace but surpluses during periods of war. c. periods of inflation. d. economic recessions.
Refer to the above figure. If the economy is currently operating at point C, then there is
A. unemployment. B. a recessionary gap. C. deflation. D. an inflationary gap.
How does investors’ preference for risk affect the slope of the security market line?
What will be an ideal response?