Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of:
A. an increase in disposable income.
B. an increase in household wealth.
C. an increase in personal taxes.
D. the expectation of a recession.
C. an increase in personal taxes.
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Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century. Has output per hour worked consistently increased at the same rate? Explain
What will be an ideal response?
What is the relationship between marginal cost and marginal product?
a. The two are not related. b. When marginal product increases, marginal cost increases. c. When marginal product increases, marginal cost falls. d. When marginal product is negative, marginal costs are negative. e. When diminishing marginal returns set in, marginal costs fall.
The market for eyeglasses is monopolistically competitive. It follows that firms in the eyeglass industry: a. could earn economic profit in long-run equilibrium
b. could earn economic profit in short-run equilibrium. c. charge a price equal to marginal cost. d. charge a price equal to the minimum average total cost.
A monopolistically competitive industry has
A. many firms producing a differentiated product. B. many firms producing an identical product. C. a few firms producing a differentiated product. D. a few firms producing an identical product.