In the above table, dissaving occurs at every level of income below
A. $5,000.
B. $10,000.
C. $7,000.
D. $8,000.
Answer: A
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Which components of aggregate expenditure are influenced by real GDP?
What will be an ideal response?
Betsy graduates from college, where she earned $3,000 a year working part-time, and takes a job as a third grade teacher, where she now earns $30,000 per year. About the same time she received her first paycheck, her bicycle was stolen. With her old income she would have purchased a new bike but with her new income she purchased a new car. Therefore,
a. bicycles are a normal good for Betsy b. automobiles are an inferior good for Betsy c. automobiles are a normal good for Betsy d. Betsy's supply curve for automobiles is upward-sloping e. bicycles and automobiles are complementary goods for Betsy
Refer to Table 7.1. Output is increasing at
A) a diminishing rate. B) an increasing rate. C) a constant rate. D) a negative rate.
Assume the price elasticity of supply for grade wheat has been estimated to be +0.82. This means that when the price of wheat increases by 10 percent, the quantity of wheat supplied to the market increases by 82 percent
Indicate whether the statement is true or false