People are likely to respond to a policy change
a. only if they think the policy is a good one.
b. only if the policy change changes the costs of their behavior.
c. only if the policy change changes the benefits of their behavior.
d. if the policy changes either the costs or benefits of their behavior.
d
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Equilibrium in the goods market occurs where
A) real GDP equals nominal GDP. B) aggregate expenditure equals autonomous consumption. C) autonomous consumption equals induced consumption. D) aggregate expenditure equals real GDP.
With positive externalities, _____
a. the market equilibrium occurs at a greater quantity than the socially optimal output b. net social welfare is maximized c. the social benefit curve lies above the private benefit curve d. there is no deadweight loss
In a simple economy (no government or foreign trade), the vertical distance between the consumption function and the expenditure schedule measures
a) undesired investment b) undesired inventory depletion c) planned investment d) unintended investment
The economy of Kiwiland can be characterized by Equation 24.6.EQUATION 24.6:C = 1,000 + 0.5YdT = 200G = 400I = 500Refer to Equation 24.6. If government spending in Kiwiland increases by 400, equilibrium output increases by
A. 400. B. 800. C. 1,600. D. 2,000.