A change in price that is accompanied by a change in income sufficient to leave a consumer's well-being unchanged is called:
A. an uncompensated price change.
B. a compensated price change.
C. an income adjusted price change.
D. the income effect.
B. a compensated price change.
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The difference between the nominal rate of interest and the real rate of interest is
A) handling charges. B) government regulatory charges. C) administrative overhead charges. D) the anticipated rate of inflation.
Which of the following components of AE (AD) accounts for approximately 50% of Ireland's GDP?
(a) Domestic household expenditure. (b) Exports (X). (c) Investment (I). (d) The net expenditure of central and local government
When deriving the aggregate demand (AD) curve from the aggregate expenditures model, an increase in U.S. product prices would cause an increase in:
A. the value of household wealth and lower consumption expenditures. B. interest rates and lower investment expenditures. C. exports and imports. D. U.S. resource prices and an increase in aggregate supply.
________ refers to the fact that both human and financial capital leave developing countries in search of a higher rate of return.
A. Outsourcing B. Divestiture C. Urbanization D. Capital flight