Consider the above figure. Autonomous consumption, in this scenario, is equal to

A. $80.
B. $60.
C. $30.
D. $40.


Answer: D

Economics

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The multiple changes in income and output that results from a change in autonomous expenditure is called the multiplier

Indicate whether the statement is true or false

Economics

In the figure above, assume that output is $10.5 trillion, while potential output is $12 trillion

If autonomous monetary policy (alone) is used to bring output to $12 trillion, then the figure implies that the real interest rate will be ________ percent, and the inflation rate will be one percent. A) 1.5 B) zero C) one D) 0.5 E) 2.5

Economics

Diversification:

A. reduces the likelihood that bad things will happen. B. means you're not likely going to be completely ruined by a single unfortunate event. C. increases the likelihood that bad things will happen. D. None of these statements is true.

Economics

Imposing taxes in markets where demand and supply are price inelastic:

A. causes less inefficiency than imposing them in price-elastic markets. B. causes more inefficiency than imposing them in price-elastic markets. C. causes no inefficiency. D. cause the same amount of inefficiency because efficiency is unrelated to market elasticity.

Economics