In 2008, consumers were mailed a stimulus check in response to the recession. The result showed that Ricardian equivalence:
A. failed to hold, as most people spent a substantial share of the money.
B. failed to hold, as most people saved the money.
C. held, as most people saved the money.
D. held, as most people spent a substantial share of the money.
Answer: A
Economics
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According to the circular flow, the value of total output produced and total income
A) will be equal. B) should increase by the unanticipated rate of inflation. C) should differ by the value of intermediate goods. D) will always be increasing in a capitalist economy.
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What does the elasticity of supply measure? How is it calculated?
What will be an ideal response?
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