Multiple Choice
Which of the following statements is false?
A) Aggregate income is equal to real GDP.
B) The consumption function is a linear relationship between consumption and income.
C) The consumption function shows the relationship between consumption and disposable income.
D) The consumption function shows the relationship between consumption and real GDP.
E) The consumption function is a nonlinear relationship between consumption and income.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: In normal times, when the economy is
Q14: The study of economic fluctuations is<br>A)more important
Q15: The consumption relationship in this chapter assumes
Q16: Economic fluctuations have been common only since
Q17: In a boom year,<br>A)potential GDP equals real
Q19: Manufacturing capacity utilization in normal times typically
Q20: The spending multiplier is the ratio of
Q21: The consumption function shows the relationship between
Q22: The marginal propensity to consume is best
Q23: Which of the following statements is true?<br>A)A