The relationship between consumer spending and disposable income is called the
A. conjunction function.
B. consumption function.
C. aggregate demand function.
D. marginal spending function.
Answer: B
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In the figure above, what is the size of the multiplier?
A) 0.25 B) $2 trillion C) 4.0 D) $0.5 trillion E) More information is needed to determine the size of the multiplier.
If income is equally distributed, the Gini ratio is zero
Indicate whether the statement is true or false
According to Joseph Schumpeter, economic growth is achieved through
A) a process termed "creative destruction." B) removing the entrepreneur from the production function. C) centralizing economic production. D) focusing only on making old products better rather than inventing new ones.
Refer to the Article Summary. Implementing a negative interest rate policy, as was advocated by the president of the Federal Reserve Bank of Minneapolis, would be designed to ________ the price level and ________ real GDP
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase