Bargain airline fares in which airlines charge varying rates to passengers for the same flight and service is an example of

Which of the following statements is not true about the consumption function?

A. It shows how consumption is influenced by disposable income. B. The equation is written as C = a + bYD. C. It indicates that consumption is inversely related to disposable income. D. It indicates the rate of consumer spending that will take place at various disposable income levels.

A positive temporary supply side shock will:

A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.