If output rises, then income
a. drops by an equal amount
b. remains stable
c. rises twice as fast as output
d. rises slowly
e. rises by an equal amount
E
Economics
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A fall in investor confidence causes the equilibrium level of output to fall
What will be an ideal response?
Economics
Why wasn't the stimulus passed in 2009 effective in reducing unemployment during the recession of 2009-10?
A) Congress cut the size of the final package, it was skewed toward tax cuts, and it was only 25% of the amount needed to restore GDP to full employment. B) The administration mismanaged it—and it was much too large. C) Fiscal policy is ineffective in a liquidity trap. D) Tax cuts and interest rate cuts would have been effective, but they were politically undesirable.
Economics