The positive effect of having more potential volunteers resulting in a greater likelihood of a beneficial outcome is known as the diffusion effect

If intended investment is $2 billion, and unwanted inventory is $0, then we know that all of the following statements are true except

a. consumption spending is $2 billion b. saving = $2 billion c. actual investment = $2 billion d. the economy is in equilibrium e. national income equals aggregate expenditure

The substitution effect of a wage increase

a. probably leads most workers to want to work more. b. certainly leads all workers to want to work more. c. probably leads most workers to want to work less. d. certainly leads most firms to want to employ more workers.