If the consumption function is below the 45-degree line
A. consumption is less than income and saving is negative.
B. consumption exceeds income and saving is positive.
C. consumption is less than income and saving is positive.
D. consumption exceeds income and saving is negative.
Answer: C
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Use the following table to answer the next question.OutputATC-1ATC-2ATC-3ATC-41,500$10$15$20$302,00091217252,50081015203,00012713183,50015611164,00018107144,50020128125,00024151195,500291913126,00035251514Plant sizes get larger as you move from ATC-1 to ATC-4.The firm's minimum efficiency scale occurs at what level of output?
A. 2,500 units B. 4,000 units C. 3,500 units D. 3,000 units
Sherry wants to rent an apartment. Although rents are below what she is willing to pay, she cannot find an apartment. Then after a month of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed
Sherry has just experienced the effects of ________. A) a rent floor with a black market B) inelastic demand C) a market working efficiently D) a rent ceiling
A reduction in the central bank's inflation target shifts the dynamic aggregate demand curve to the left resulting in:
A. higher current output and higher inflation. B. lower current output and higher inflation. C. higher current output and lower inflation. D. lower current output and lower inflation.
The reduction in aggregate demand caused by deflation:
A. further reduces prices, causing a deflationary spiral. B. further reduces prices, causing aggregate supply to shift left back to long-run equilibrium. C. will decrease production and increase prices, causing inflation to adjust the price level. D. will decrease production and increase prices, causing a deflationary trap.