As possible income increases, consumption spending

What will be an ideal response?

Increases by less than the increase in disposable income

Economics

You might also like to view...

The cyclically adjusted budget is calculated at potential GDP

Indicate whether the statement is true or false

Economics

To illustrate the classical argument that "supply creates its own demand," the aggregate supply curve should be drawn:

a. downward-sloping. b. upward-sloping. c. horizontal. d. vertical.

Economics