Which of the following is true of the business cycle record of the United States?
a. Recessions have been lengthier during the last two decades than was true prior to 1980.
b. Real GDP contracted throughout most of the 1950s.
c. Real GDP in 2000 was approximately the same as 1950.
d. Since 1950, the fluctuations in GDP have been less severe than before 1950.
d
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The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, compared to a monopoly who charges a single price, the change in consumer surplus is
A) A. B) A + B + C. C) A + B + C + D + E. D) zero.
The marginal propensity to consume is:
A. the change in consumer spending minus the change in aggregate disposable income. B. the change in consumer spending divided by the change in aggregate disposable income. C. the proportion of total disposable income that the average family consumes. D. increasing if the marginal propensity to save is increasing.
Market failure occurs when
A. the stock market experiences a very large loss. B. a good is too expensive for the market to provide. C. one good is superior to another and drives it out of the market. D. an unrestrained market economy leads to too few or too many resources going to a specific economic activity.
If consumers foresee future taxes completely, a reduction in taxes this year that is accompanied by an offsetting increase in future taxes would cause
A. a rightward shift in the saving curve and a rightward shift in the investment curve. B. no shift in the saving curve, but a rightward shift in the investment curve. C. a shift in neither the saving nor the investment curve. D. a leftward shift in the saving curve, but no shift in the investment curve.