As disposable income rises, consumption:
a. Increases and saving decreases
b. And saving both decrease
c. Decreases and saving increases
d. And saving both increase
d. And saving both increase
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When the price level rises, the quantity of real GDP supplied ________ because ________
A) increases; new businesses open B) increases; businesses fail and have to shut their doors C) decreases; businesses fail and have to shut their doors D) increases; AS curve shifts rightward E) decreases; new businesses open
Changes in domestic and foreign income result in:
A) movements along the demand and supply curves of the foreign exchange market. B) shifts in the demand and supply curves of the foreign exchange market. C) all of the above. D) none of the above.
Unlike an accountant, an economist measures costs on a(n) ________ basis
A) explicit B) replacement C) historical D) conservative
People tend to earn higher incomes as they mature and gain experience in the workforce. As a consequence of this income mobility,
A. statistics on income may overstate inequality. B. the overall poverty rate may rise as the population ages. C. redistribution of income may encourage innovation and economic growth. D. statistics on income may understate inequality.