The following list contains factors that are related to the aggregate demand curve.1)Household expectations 2)Profit expectations 3)Degree of excess capacity 4)Personal income tax rates 5)Exchange rates 6)National income abroad 7)Government spending 8)Household wealth Changes in which three of the above factors would most likely cause a change in consumer spending?
A. 1, 2, and 6
B. 3, 5, and 7
C. 1, 4, and 8
D. 5, 6, and 7
Answer: C
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PPP-adjustment involves:
A. recalculating economic statistics to account for differences in price levels across countries. B. a method very similar to adjusting to cost-of-living increases using a price index like the CPI. C. recalculating a variable like GDP per capita so we can compare someone's standard of living across countries. D. All of these statements are true.
If nominal GDP of a country increased and real GDP remained unchanged in a particular year, which of the following is most likely to have taken place?
a. Output increased and the price level increased b. Output increased and the price level decreased c. Output remained constant and the price level increased d. Output decreased and the price level decreased e. Output increased and the price level remained constant
Changes in production functions are associated with changes in
A) the level of output. B) demand. C) the levels of costs. D) technology.
Refer to the information provided in Table 19.8 below to answer the question(s) that follow.Table 19.8Total IncomeTotal Taxes$20,000 $2,000 40,000 4,800 60,000 9,000 80,000 16,000Related to the Economics in Practice on page 393: Refer to Table 19.8. If income increases from $20,000 to $40,000, the marginal tax rate is
A. 2%. B. 12%. C. 14%. D. indeterminate from this information.