Which of the following statements is true?
A. According to the permanent income hypothesis, a person who received a windfall of say $100,000 would spend most of it that year.
B. As disposable income rises, induced consumption falls.
C. The minimum amount that people will spend if disposable income is zero is called induced consumption.
D. A rapid increase in the prices of residential housing results in an increase in consumption due to the wealth effect.
D. A rapid increase in the prices of residential housing results in an increase in consumption due to the wealth effect.
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Output per worker must be ________ output per person.
A. less than or equal to B. no more than half the size of C. equal to D. greater than or equal to
A relative measure of the importance of trade is
A) the dollar value of trade. B) trade as a percentage of GDP. C) the dollar value of trade adjusted for inflation. D) trade as a percentage of investment. E) None of the above.
The estimated demand for a good is
= 4800 - 16P - 0.65M - 1.5PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If income decreases by $2,000, all else constant, quantity demanded will ________ by ________ units.
A. increase; 1.30 units B. increase; 1,300 units C. decrease; 65 units D. decrease; 6.5 units
The total market value of final goods and services that could be produced in a given time period at full employment is called (2)
What will be an ideal response?