Figure 11-3
In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in fixed taxes?
a.
C1 in graph (a)
b.
C2 in graph (a)
c.
C1 in graph (b)
d.
C2 in graph (b)
b
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"Recession" refers to a period when real GDP in the economy
A) declines for at least six months. B) grows rapidly. C) experiences a rise in living standards. D) suffers due to political instability.
Explain how the development of telecommunications has made cities like Bangalore and Omaha important locations for the development of service trade?
The component of aggregate expenditure that is not like other components because, in general, it is directly neutral to macroeconomic changes is:
A. consumption spending. B. investment spending. C. government spending. D. net export spending.
Private costs are
A) external costs borne by private firms. B) explicit costs rather than implicit costs. C) costs borne by private members of society rather than governmental bodies. D) costs borne solely by the individuals who incur them.