The answer is: 1/(1 - MPC). What is the question?
A) What is the marginal propensity to save?
B) What is the efficiency wage model?
C) What does consumption equal if the economy is in equilibrium?
D) What is the multiplier?
E) What does disposable income equal if the economy is in equilibrium?
D
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Under which circumstances could the marginal cost and average variable cost curves be one and the same?
What will be an ideal response?
Use the data in the Worked Problem on p. 287 (page 699 in Economics). Calculate the change in equilibrium expenditure when investment decreases by $150 billion
What will be an ideal response?
A transfer payment is a payment by the government to an individual
A) for an investment good. B) for which the government does not receive a good or service in return. C) for a debt owed. D) for a service. E) for a consumption good.
For the CPI. the value of the index in the base year
A) always equals 100. B) depends upon price and quantity that are constantly changing. C) is always greater than 100. D) depends upon what prices did the year before.