A pure monopoly is defined as having only one seller

Suppose that medical researchers discover a new drug which slows the aging process allowing the average life span in the United States to increase to 95 years of age. The lifecycle hypothesis suggests that

A) consumption spending would increase since lifetime income increases. B) consumption spending would increase since estimates of permanent income would increase. C) consumption spending would decrease since savings would rise to provide income for the longer retirement periods. D) None of the above is correct since predicted future annual incomes may not change.

Most macroeconomic variables that measure some type of income, spending, or production fluctuate closely together

a. True b. False Indicate whether the statement is true or false