On a graph of the consumption function, where the consumption function crosses the 45 degree line,
A) there is no saving and no dissaving.
B) disposable income is zero.
C) the maximum level of disposable income is earned.
D) there are no tax payments.
E) induced consumption equals zero.
A
Economics
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The chain-weighted output index method of measuring real GDP is based on
A) using current prices rather than base year prices. B) averaging the market value of the expenditures over a two year period and then comparing with a base period. C) using the prices of two adjacent years to calculate the growth rate of real GDP. D) averaging the nominal and real measures of GDP to come up with a more accurate figure.
Economics
Refer to Table 10.1. The value of the tax multiplier in this economy is
A) 0. B) -2. C) -4. D) -5.
Economics