Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?
a. An increase in disposable income taxes.
b. An increase in interest rates
c. A decrease in permanent disposable income.
d. An increase in wealth.
e. An increase in savings.
d
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At the end of an expansion, wages of workers are usually rising faster than prices
Indicate whether the statement is true or false
The time it takes for policy makers to be sure of what the data are signaling about the future course of the economy is called
A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.
Karl Marx's view of income derived from interest is that it is
a. appropriate as long as the loanable funds market is in equilibrium b. ethical as long as everyone who receives it earns it c. allowable if the income is earned, not inherited d. necessary otherwise no loanable funds would be provided e. objectionable because property ownership, including ownership of capital, is unjustifiable
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the opportunity to trade Silvia and Art can ________ the maximum consumption of computers by ________ units.
A. decrease; 160 B. decrease; 80 C. increase; 40 D. increase; 160