For a normal good, the income and substitution effects work in the ______ direction. Therefore, a change in price produces a ______ change in uncompensated demand than in compensated demand.

The analysis of asymmetric information problems is called ________

A) adverse selection B) microeconomics C) cybernetics D) agency theory

Which of the following statements is (are) incorrect?

a. Consumption plays a central role in the Keynesian theory of income determination b. Consumer expenditure is the largest component of aggregate demand c. In recent years, consumption has totaled between 60 and 70 percent of GDP d. Keynes believed that investment was largely determined by expectations e. all of the above are correct