The equation for the consumption function maps out a(n)
a. upward sloping straight-line (linear) curve
b. downward sloping straight-line (linear) curve
c. horizontal (straight-line or linear) curve
d. rectangular hyperbola
e. vertical (straight-line or linear) curve
A
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Theoretically, the market demand for a public good is found by
a. vertically addingthe MEC and MPCfunctions b. overcomingfree-ridership and vertically summingthe price responses for each quantity c. adding horizontally the marginal benefits received by each consumer at every price level d. summing the quantities each person is willing and able to buy at each and every price
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary