Refer to the above figure. The equilibrium level of real GDP occurs
A. to the right of point A.
B. at point A.
C. to the left of point A.
D. at the undetermined point on the graph depending upon the level of investment.
Answer: B
Economics
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Refer to Figure 22-4. Suppose the economy gains more capital per hour worked and experiences technological change. This is shown in the figure above by the movement from
A) E to B to D. B) A to E. C) A to B to C. D) A to D.
Economics
If disposable income increases by $100 and saving increased by $25, ceteris paribus, we may conclude that
A) the marginal propensity to consume is 0.25. B) the marginal propensity to save is 0.25. C) $15 is autonomous consumption. D) a change in disposable income is induced by a change in consumption.
Economics