The marginal propensity to consume (MPC) is the slope of the:
a. GDP curve.
b. disposable income curve.
c. consumption function.
d. autonomous consumption curve.
c
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Refer to Figure 13-3. Suppose the economy is at point A. If the economy experiences a supply shock, where will the eventual short-run equilibrium be?
A) A B) B C) C D) D
If total spending rises from one year to the next, then which of the following could not be true?
a. the economy is producing a smaller output of goods and services, and goods and services are selling at higher prices. b. the economy is producing a larger output of goods and services, and goods and services are selling at lower prices. c. the economy is producing a larger output of goods and services, and goods and services are selling at higher prices. d. the economy is producing a smaller output of goods and services, and goods and services are selling at lower prices.