In U.S. recessions, growth in total consumption is ________, which is ________ with the workings of the permanent-income and life-cycle hypotheses
A) largely uninterrupted, perfectly consistent
B) largely uninterrupted, rather inconsistent
C) noticeably reduced, perfectly consistent
D) noticeably reduced, rather inconsistent
D
You might also like to view...
The situation in which a person places greater value on a good as fewer and fewer people possess it is called the
A) Bandwagon Effect. B) Greater Value Effect. C) Snob Effect. D) Behavioral Effect.
Which of the following countries has the largest national debt as a percentage of GDP?
a. France. b. Japan. c. United States. d. Canada. e. Italy.
Believers in fixed rules maintain that
a. with accurate forecasts, we can see inflation coming at least one year ahead of time. b. the length of stabilization lags is not important because fiscal policy actions are taken quickly and the economy feels the effect on aggregate demand quickly. c. we should forget about discretionary policy and put the economy on autopilot, relying instead on automatic stabilizers and the economy's self-correcting mechanism. d. the economy's self-correcting mechanism is slow and not very reliable, even with automatic stabilizers.
A cutting-edge biotech firm is hiring recent college graduates. To attract the very best applicants and to increase worker effort the firm is paying a wage 20% higher than the market wage for entry level employees in this industry. What is the term for the wage paid in this example?