At the point at which planned real consumption spending is equal to real disposable income
A) the consumption function is above the 45-degree line.
B) the consumption function intersects the savings function.
C) the consumption function intersects the 45-degree line.
D) the consumption function is below the 45-degree line.
C
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Explain how a Pigovian tax works
What will be an ideal response?
Which of the following best describes average variable cost?
a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced. c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies.
Advocates of activist policy making point to the swift response of the Fed after September 11, 2001, as an example of effective policy making
a. True b. False Indicate whether the statement is true or false
This monopolistic competitor is in the
A. short run making a profit.
B. short run taking a loss.
C. long run making a profit.
D. long run taking a loss.