The slope of the consumption function shows how _____
Fill in the blank(s) with the appropriate word(s).
consumption changes as the level of income changes.
You might also like to view...
What is a principal-agent problem and why does it create inefficiency? What are efficiency wages and how can they help correct principal-agent problems?
What will be an ideal response?
The lowest sustainable rate of unemployment that policy makers believe is achievable under existing conditions is:
A. called the optimal rate of unemployment. B. called the target rate of unemployment. C. called cyclical unemployment. D. zero.
Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.
Figure 26.8Refer to Figure 26.8. For this economy to produce at Point B and sustain it without inflation,
A. government spending must increase. B. government spending must decrease. C. potential output must increase. D. the price of oil must increase.
Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if a few sellers of notebooks decide to exit the market, everything else remaining unchanged?
A) Both the equilibrium price and quantity of notebooks remain unchanged. B) Both the equilibrium price and quantity of notebooks decrease. C) The equilibrium price of notebooks increases, but the equilibrium quantity decreases. D) The equilibrium price of notebooks decreases, but the equilibrium quantity increases.