Refer to the given data. When plotted on a graph, the vertical intercept of the consumption schedule in economy (3) is _____ and the slope is _____.
Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
A. minus $2; .9
B. $2; .18
C. $100; .5
D. $2; .9
D. $2; .9
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If real wages fall as output rises, then in the classical model it must be the case that
a. labor demand rose. b. labor demand fell. c. labor supply rose. d. labor supply fell. e. none of the above.
Keynesians, monetarists, and classical economists all agree that the transactions demand for money is money being used as a
a. measure of value b. store of value c. standard of deferred payments d. medium of exchange e. medium of barter
(Consider This) Suppose that salsa manufacturers sell 2 million bottles at $3.50 in one year and 3 million bottles at $3 in the next year. Based on this information, we can conclude that the:
A. law of supply has been violated. B. law of demand has been violated. C. demand for salsa has increased. D. supply of salsa has increased.
If, at some level of output, total planned real expenditures are greater than real Gross Domestic Product (GDP)
A. real GDP will either fall or remain unchanged, depending on the MPC. B. real GDP will fall. C. real GDP remains unchanged. D. unplanned inventories will decrease.