Using the table above, and assuming no bequest, what amount of consumption is chosen in period 1, if the consumer wants consumption in the two periods to be equal?
If initial wealth is $40,000, what amount of consumption is equal over the two periods?
Use equation (2), setting = - $34,902; $45,098
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The expenditure multiplier equals 5 and there is a $3 million increase in investment. Equilibrium expenditure
A) increases by $5 million. B) increases by $0.60 million. C) increases by $15 million. D) decreases by $15 million. E) increases by $3 million.
Which furniture production process would have the highest furniture prices?
a. furniture made by handsaw and hammer b. furniture made with power equipment c. furniture made by grade school-educated workers d. furniture made in an automated furniture factory
Which of the following is correct? Investment tax credits
a. can increase investment, but stimulating investment is not a key to ending a recession. b. can increase investment, which is a key to ending a recession. c. can not increase spending on investment goods, but stimulating investment is not a key to ending a recession. d. can not increase spending on investment goods, but stimulating investment is a key to ending a recession.
If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?
A. An increase in quantity of unskilled labor demanded. B. A decrease in the quantity of unskilled labor supplied. C. A shortage of unskilled labor. D. A surplus of unskilled labor (unemployment).