Multiple Choice
The marginal propensity to consume measures
A) the cyclical deficit.
B) the structural deficit.
C) how much consumption expenditure occurs at the equilibrium level of income.
D) how much of a change in consumption expenditure results from a change in disposable income.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: The Keynesian aggregate expenditure model focuses on
Q5: Suppose disposable income increases from $11 trillion
Q6: At potential GDP<br>A) there is no unemployment
Q7: The level of potential GDP<br>A) increases when
Q8: Which of the following is true?<br>A) The
Q10: The impulse leading to business cycles in
Q11: Keynesians and monetarists believe that economic fluctuations
Q12: The growth rate of productivity is a
Q13: If the Fed increases the quantity of
Q14: Classical economists believe that the economy<br>A) requires