Exam 3: National Income Where It Comes From and Where It Goes

Government transfer payments:

Public saving is:

Assume that the consumption function is given by C = 150 + 0.85(Y - T) and the tax function is given by T = t + t Y. If 0 1 T increases by 1 unit, then consumption: 0

Total investment in the United States averages about percent of GDP.

If the consumption function is given by C = 500 + 0.5(Y - T), and Y is 6,000 and T is given by T = 200 + 0.2Y, then C equals:

The factor that makes national saving equal investment, in equilibrium, is:

According to Euler's theorem, if competitive firms pay each factor its marginal product and the production function has constant returns to scale, the sum of all factor payments will equal:

If the production function describing an economy is Y = 100 K^.25L^.75, then the share of output going to labor:

All of the following actions increase government purchases of goods and services except the:

What determines the distribution of national income between labor and capital in a competitive, profit-maximizing economy with constant returns to scale?

Economic profit is zero if:

In a closed economy, the components of GDP are:

In the long run, the level of national income in an economy is determined by its:

The government spending component of GDP includes all of the following except:

In the long run, what determines the level of total production of goods and services in an economy?

The public policy implication of Goldin and Katz's analysis of growing income inequality is that rever require that more of society's resources be put into:

Private saving is:

Assume that the consumption function is given by C = 150 + 0.85(Y - T), the tax function is given by T = t + t Y, and Y 0 1 Is 5,000. If t decreases from 0.3 to 0.2, then consumption increases by: 1

In the classical model with fixed income, if the demand for goods and services is greater than the supply, the interest rate will:

The real wage is the return to labor measured in: