If a consumer has an income of $120, the price of X is $5, and the price of Y is $8. Which combination of the two goods is unattainable?
A. 2X and 13Y.
B. 8X and 10Y.
C. 12X and 8Y.
D. 20X and 2Y.
Answer: A
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In the Keynesian model, fluctuations in aggregate spending cause:
A. enhanced labor market mobility. B. changes in potential output. C. recessions and expansions. D. changes in average labor productivity.
The impact of declining stock prices in the U.S. during the period 2000-2002 on U.S. household wealth was at least partially offset by:
A. an increase in the saving rate. B. an increase in public saving. C. a decrease in the saving rate. D. increasing housing prices
What does research tell us about the impact of Ricardian equivalence effects on the economy?
A) Ricardian equivalence effects may exist, but their magnitudes are unclear. B) There is no evidence of any impact of Ricardian equivalence effects. C) Ricardian equivalence effects have a huge impact on aggregate demand. D) There is a very small impact on both aggregate demand and aggregate supply.
The multiplier is
What will be an ideal response?