If income rises and the demand for a product remains unchanged, the income elasticity of demand for that product is unit elastic

a. True
b. False


B

Economics

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A decrease in the marginal income tax rate is a fiscal policy which will increase aggregate demand

Indicate whether the statement is true or false

Economics

In the circular-flow diagram, one loop represents the flow of goods and services, and the other loop represents the flow of factors of production

a. True b. False Indicate whether the statement is true or false

Economics

Planned aggregate expenditure (PAE ) equals:

A. C + I p + G + NX. B. C + I + G + NX p. C. C p + I + G + NX. D. C + I + G p + NX.

Economics

Refer to the above figure. Dissaving occurs,

A. only at point A. B. to the left of point B. C. only at point B. D. to the right of point B.

Economics