Consumption smoothing refers to
A) the tendency of all consumers to choose the same amount of current consumption.
B) the tendency of consumers to seek a consumption path over time that is smoother than income.
C) the tendency of consumers to seek an income path over time that is smoother than consumption.
D) consumer's concerns about going heavily into debt.
B
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An expansion occurs when the level of real GDP is
A) increasing. B) decreasing. C) at a cyclical peak. D) at a cyclical trough.
Personal consumption expenditures are the largest component of GDP
a. True b. False Indicate whether the statement is true or false
The law of diminishing returns indicates that the marginal physical product of a factor declines as more:
A. Output is produced with the most efficient combination of factors. B. Of the factor is used, holding output constant. C. Of the factor is used, holding other inputs constant. D. Of the good is consumed.
What has been the range for the duration in months of U.S. recessions since 1950?
A. 27 months to 32 months B. 19 months to 26 months C. 0 months to 5 months D. 6 months to 18 months