If income decreases, the budget constraint will shift in but the slope will remain the same
a. True
b. False
A
You might also like to view...
Over the past year, output grew 6%, capital grew 2%, and labor grew 4%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did productivity grow?
A) 2.0% B) 2.6% C) 3.0% D) 3.3%
In a sealed-bid first price auction, if you notice that your competition is weaker, you should
a. Shade your bid more b. Shade your bid less c. Bid more aggressively d. Both B&C
A conspiracy among firms to fix prices was outlawed by the Sherman Antitrust Act
a. True b. False Indicate whether the statement is true or false
In general, the faster inflationary expectations adjust, the: a. less macro policy can influence unemployment
b. better discretionary policy can be expected to work. c. slower the adjustment of the short-run Phillips curve. d. stronger the case for active policy. e. more effectively a policy can influence unemployment.