In Figure 15-2 above, the difference between consumption levels at point A and point B is equal to
A) the long run MPC times the change in disposable income.
B) the short run MPC times the change in disposable income.
C) (Y0 - Y2 ) times the short run change in income.
D) the long run change in income times (Y0 - YP).
B
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Explain how globalization has benefitted consumers but has also widened the gap between rich and poor in the United States
What will be an ideal response?
Which of the following contributed to the severity of the Great Depression in the 1930s?
a. constant structural changes that created uncertainty and undermined markets b. the Fed's policy of rapid monetary expansion during the early 1930s c. a reduction in tariffs protecting many U.S. industries d. a substantial tax rate reduction, which led to large deficits and high interest rates during the early 1930s