What impact do transfer payments have?
A. They increase the incentive to work and shift AS to the left.
B. They increase the incentive to work and shift AS to the right.
C. They reduce the incentive to work and shift AS to the right.
D. They reduce the incentive to work and shift AS to the left.
Answer: D
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If the ratio of the dollar price of a U.S. toy to the dollar price of a Chinese toy is less than one:
A) retailers in the U.S. should buy the toys from both Chinese suppliers and American suppliers. B) retailers in the U.S. should not buy the toys from both Chinese suppliers and American suppliers. C) retailers in the U.S. should buy the toys from Chinese suppliers. D) retailers in the U.S. should buy the toys from American suppliers.
In order for society to have a rising standard of living, output must grow: a. at a slower rate than the labor force. b. at the same rate as the population. c. faster than the population
d. at a slower rate than the population. e. at a slower rate than infrastructure.
A change in the value of consumer's stock market holdings will cause a shift in the consumption function
a. True b. False Indicate whether the statement is true or false
What type of relationship exists between the marginal propensity to consume (MPC) and the multiplier? Explain why this relationship exists, giving a hypothetical numerical example to help support your answer