Suppose a consumer's nominal income is $50,000 and the cost-of-living index is 1.3. The consumer's real income is:
A. $50,000.
B. $65,000.
C. $57,500.
D. $38,462
D. $38,462
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In Macroland autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, investment is fixed at 50, government expenditures are fixed at 150, and net exports are fixed at 20. Aggregate expenditure equals
A. 290 + 0.25Y. B. 290 + 0.75Y. C. 320 + 0.75Y. D. 320 + 0.25Y.
"The marginal utility received from each additional unit of a good consumed declines, other things constant." This is a statement of the law of
a. increasing marginal returns b. marginal rate of substitution c. supply d. diminishing marginal utility e. demand
Using the information in the table shown, the average revenue for 5 units is:
This table represents the revenues faced by a monopolist.
A. $600
B. $300
C. $3,000
D. $120
Given a national income of $800 billion, an MPC of 0.8, and autonomous consumption of $60 billion, what is the level of consumption spending?
a. $640 billion b. $700 billion c. $760 billion d. $800 billion e. $860 billion