During 2016, Sean's consumption equals $25,000 and the change in his net worth is -$5,000. Sean's economic income for 2012 is
A. $5,000.
B. $20,000.
C. $25,000.
D. $30,000.
Answer: B
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Which of the following would increase the size of the government purchases multiplier?
A) an increase in the quantity of imports purchased by households from an increase in income B) a decrease in the amount saved by households from an increase in income C) an increase in the tax rate D) a decrease in the amount of consumption spending by households from an increase in income
The MP Curve ________
A) demonstrates how central banks respond to changes in inflation with changes in the interest rate B) shows how changes in interest rates affect equilibrium output C) explains short run fluctuations in output and inflation D) all of the above E) none of the above
According to data on Pennsylvania agriculture in the 18th century, the average size of a farm _________, while the number of cleared acres per farm ______________
a. increased; decreased b. decreased; increased c. decreased; remained fairly stable d. remained fairly stable; increased
The short run in macroeconomics is the period in which:
A. prices change significantly. B. no contracts or agreements exist to fix prices. C. demand determines output. D. the demand curve is vertical.