In the consumption function model, the 45-degree line represents where
A. planned real saving is equal to zero.
B. planned real saving is greater than actual real savings.
C. planned real consumption spending is equal to zero.
D. the real disposable income is equal to zero.
Answer: A
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A) state B) domestic investor C) depositor D) domestic corporate
Producer surplus is the sum of the profits earned by all firms in a market
Indicate whether the statement is true or false
The more narrowly we define a good, the easier it is to find substitutes, and
a. the greater is the number of producers of that good b. the greater is the supply-side response c. fewer consumers therefore wish to purchase the good d. less elastic is the demand for that good e. more elastic is the demand for that good
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a. Inventories would shrink and GDP would drop in future periods. b. Inventories would grow and GDP would drop in future periods. c. Inventories would shrink and GDP would increase in future periods. d. Inventories would grow and GDP would increase in future periods. e. Inventories would not change and GDP would drop in future periods.