The 45-degree line used in a consumption function represents:
a. the saving function.
b. all points at which saving equals disposable income.
c. all points at which consumption equals saving.
d. all points at which all disposable income is consumed.
e. the aggregate income of the economy.
d
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Explain why each of the following is not a valid argument for protection
(a) patriotism (b) fair play (e.g. level international playing fields) (c) preservation of jobs
Intermediate goods and services are:
A. used only as inputs to produce something else and are not counted as separate items in GDP. B. goods that consumers buy in parts-like a new tire for their car-and are included as separate items in GDP. C. goods that consumers buy in parts-like a new tire for their car-and are not included as separate items in GDP. D. used only as inputs to produce something else and are counted as separate items in GDP.