Refer to the information provided in Figure 23.10 below to answer the question(s) that follow.
Figure 23.10Refer to Figure 23.10. [200 + 0.8Y] represents the
A. aggregate expenditures function.
B. aggregate income function.
C. MPC.
D. MPS.
Answer: A
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Many economists believe a comprehensive income tax
A. would balance efficiency and equity well. B. would be less efficient than excise taxes. C. would be more efficient than a lump sum head tax. D. would be less equitable than a lump sum head tax.
Okun's Law has
A. proven to be correct over time in that as GDP increases by 3%, there has been a 1 percentage point decline in unemployment. B. not turned out to be a law-the relationship between changes in GDP and the unemployment rate is more complex than Okun's Law indicates. C. been proven false, because there is a positive relationship between changes in GDP and the unemployment rate. D. been proven to be completely incorrect-there isn't a negative relationship between GDP and the unemployment rate.
In the above figure, a negative relationship is demonstrated in which of the graphs?
A) Figure A B) Figure B C) Figure C D) Figure D
Explain what occurs in the capital market
What will be an ideal response?