Differentiate between an induced increase in consumption and an autonomous increase in consumption. How are they represented on a graph?
What will be an ideal response?
An induced increase in consumption is an increase in consumer spending that stems from an increase in consumer incomes. It is represented on a graph as a movement along a fixed consumption function.An autonomous increase in consumption is an increase in consumer spending without any increase in consumer incomes. It is represented on a graph as a shift of the entire consumption function.
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If Slick Shades, a sunglasses manufacturer, merges with Best Lens, a lens manufacturer, and the combined firm is able to reduce the number of human resource departments from two to one, the merger created ________.
A) a hold-up problem B) synergies C) technological interdependencies D) managerial diseconomies
If a monopolist produces to a point at which marginal revenue is greater than marginal cost then
A) profits are being maximized. B) profits will always be negative. C) the incremental cost of producing the last unit exceeds the incremental revenue. D) the incremental cost of producing the last unit is less than the incremental revenue.
Factor payments are
a. amounts paid to resource owners for the use of their resource b. amounts paid for goods c. another term for revenues d. the amount households put into savings e. payments made to workers who are employed only part time
Which of the following will NOT shift the aggregate demand curve?
A. a change in government expenditures B. depreciation in the value of the national currency C. a change in the domestic marginal tax rates D. a change in the domestic price level