If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):

Which one of the following changes is consistent with a change in an economy's consumption equation from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?

a. an increase in income taxes b. an increase in interest rates c. a decrease in induced consumption d. an increase in autonomous consumption e. an increase in savings

When changes in the price level cause changes in the interest rate and, thus, changes in aggregate output demanded, we call this effect

A) the multiplier effect. B) the real wealth effect. C) the real income effect. D) the consumption link