Which of the following would cause an upward shift in the consumption function?
a. a stock market crash
b. an increase in the price level
c. a decrease in disposable income
d. a decrease in the price level
d
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The study of the aggregate economic variables is
A) macroeconomics. B) microeconomics. C) positive economics. D) normative economics.
If Alex seeks to maintain a constant income level, and all workers in his industry, including Alex, get a wage increase, which of the following will always be true?
A. The substitution effect of the wage increase leads to less work B. The market supply of labor curve will be backward bending for Alex's type of work C. The income effect of the raise causes Alex to work more D. Alex will have a backward bending supply curve for his labor
Table 17.2YearReal GDP1$400 million2$425 millionRefer to Table 17.2. From year 1 to year 2, real GDP grew at a rate of
A. 1.5 percent. B. 25 percent. C. 5.9 percent. D. 6.25 percent.
To combat unemployment the government should use fiscal and monetary policies to
a. run a deficit and increase the money supply. b. run a deficit and decrease the money supply. c. run a surplus and increase the money supply. d. run a surplus and decrease the money supply.