Question
David's disposable income increases from $2,400 to $2,800 and his level of saving increases from minus $200 to a plus $200, it may be concluded
- David's disposable income increases from $2,400 to $2,800 and his level of saving increases from minus $200 to a plus $200, it may be concluded that his marginal propensity to:
A.consume is one-half.
- B.All of the other answers are incorrect
- C.consume is one-sixth.
- D.save is three- fourths.
- E.consume is three-fourths.
2.Genevieve wants know about the Phillips Curve (PC). Which of the following statements is correct about it?
A.If the PC shifts right, more information is needed to draw a conclusion about what is happening
- B.If the PC shifts right, this indicates that there was a rightward shift in the AD curve only
- C.All of the other answers are incorrect
- D.If the PC shifts right, this indicates that there was a rightward shift in the AS and AD curve
- E.If the PC shifts right, this indicates that there was a rightward shift in the AS curve only
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Economics
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
18th edition
978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694
