A decrease in disposable income will:
a. shift the consumption function upward
b. shift the consumption function downward.
c. cause an upward movement along the consumption function.
d. cause a downward movement along the consumption function.
e. make the consumption function flatter.
d
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The utilitarian view of equity would lead to:
A) equal allocations of goods across all persons. B) maximizing the utility of the least-well-off person. C) maximizing the total utility of all society members. D) none of the above
Which of the following is a major area of disagreement between activists and nonactivists?
a. Activists believe discretionary macroeconomic policy can be applied in a manner that will enhance economic stability. Nonactivists disagree. b. Activists believe monetary policy is more potent than fiscal policy. Nonactivists disagree. c. Activists believe changes in monetary and fiscal policy exert their effects instantaneously. Nonactivists think they work only with a substantial lag. d. Nonactivists think macroeconomic policy is sometimes motivated by the pursuit of political gain. Activists disagree.
Which of the following is an example of a highly organized market?
a. the market for textbooks b. the market for spa services c. the market for soybeans d. the market for ice cream
The two sector flow model represents a good way to see how GDP is counted. What are the two methods or approaches to counting GDP?
What will be an ideal response?