An increase in growth rates will cause:
a. an inward shift of an economy's production possibilities curve
b. an outward shift of an economy's production possibilities curve.
c. a movement from a point on an economy's production possibilities curve to a point inside the curve.
d. an economy's production possibilities curve to slope upward.
b
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The circular flow of income shows
A) the dollar value of output is less than the total income. B) the dollar value of output is exactly equal to the total income. C) the dollar value of output is more than the total income because of the existence of profits. D) the dollar value of output is more or less than the total income, depending on whether profits are positive or negative.
According to the Bureau of Economic Analysis (BEA), personal consumption expenditures grew at an annualized rate of 0.5% in August 2012, and this increase in spending was accompanied by income growth
If you were building a macroeconomic model that explores the effect of the growth in income on the increase in consumer spending, the growth in income would be an ________ variable and the increase in consumer spending would be an ________ variable. A) endogenous; endogenous B) endogenous; exogenous C) exogenous; exogenous D) exogenous; endogenous