Price level changes have their greatest effect on consumers'
a. income.
b. wealth.
c. debt.
d. expectations.
b
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An effective minimum wage tends to
A) increase the supply of unskilled labor. B) decrease the demand for unskilled labor. C) create a surplus of unskilled labor. D) accomplish all of the above. E) accomplish none of the above.
Which of the following is an equilibrium condition in the ISLM model?
A) Labor demand = labor supply B) Desired investment = desired saving C) Government spending = taxation D) Money supply = income
In the expression Pr(deny = 1| P/I Ratio, black) = ?(-2.26 + 2.74P/I ratio + 0.71black), the effect of increasing the P/I ratio from 0.3 to 0.4 for a white person
A) is 0.274 percentage points. B) is 6.1 percentage points. C) should not be interpreted without knowledge of the regression R2. D) is 2.74 percentage points.
A recessionary gap can be defined as:
a. an economy that is operating above its full-employment capacity. b. an economy that is operating at full-employment capacity. c. the amount by which aggregate expenditures exceeds the aggregate expenditures level needed to generate equilibrium real GDP at full employment without inflation d. the amount by which aggregate expenditures falls short of the level needed to generate equilibrium real GDP at full employment without inflation. e. the easiest way out of a depression.