The consumption function shows the relationship between
a. planned consumption expenditures and disposable income.
b. permanent income and savings.
c. business inventory and real GDP.
d. aggregate demand and aggregate consumption.
A
Economics
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The full-employment level of real GDP is the level which can be produced with: a. given technology and productive resources
b. frictional and structural unemployment equal to zero. c. cyclical unemployment equal to zero. d. both a and b. e. both a and c.
Economics
Prices tend to be sticky because:
A. firms are worried that frequent price changes would annoy consumers. B. most firms have agreements with each other to fix prices at profit-maximizing levels. C. government controls most prices. D. foreign competition discourages domestic firms from price changes.
Economics