Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. If no income is earned by this family, its total income would equal
a. $6,000
b. $15,000
c. $18,750
d. $60,000
e. $3,750
B
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Price elasticity of demand is measured by the percentage change in quantity demanded divided by the percentage change in income
Indicate whether the statement is true or false
If the economy experiences an unplanned inventory accumulation at the full employment level of GDP, then the economy is in a(n)
a. inflationary gap. b. hyperinflation. c. recessionary gap. d. full employment gap.
In 1975 tuition at Wattsomata University was $2,500 and the consumer price index was 80 . In 2011 tuition was $12,000 and the price index was 320 . Which of the following is correct?
a. Nominal and real tuition were both higher in 1975. b. Nominal and real tuition were both higher in 2011. c. Nominal tuition was higher in 1975, real tuition was higher in 2011. d. Nominal tuition was higher in 2011, real tuition was higher in 1975.
The MPC shows the relationship between:
a. interest rates and investment. b. disposable income and consumer spending. c. saving and investing. d. inflation and unemployment