An upward shift of the consumption function might be caused by:
a. an increase in disposable income.
b. a decrease in disposable income.
c. a decrease in the price level.
d. a decrease in household wealth.
e. an increase in the interest rate.
c
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
In the petroleum industry, proved reserves are
a. evidence that uncertainty is not a problem in the industry. b. inevitably growing smaller over time. c. the same thing as the current supply of petroleum. d. resources recoverable at current prices and technology.
Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas. To Lonnie
A) raspberries and papayas are complements. B) raspberries and papayas are inferior goods. C) raspberries and papayas are normal goods. D) raspberries and papayas are substitutes.
Relative to a cure for AIDS, the demand for an AIDS vaccine would be
A. more inelastic. B. equal in elasticity. C. more elastic. D. not as elastic.