Suppose a consumer is currently spending all of her available income on two goods: music CDs and DVDs. If the price of a CD is $9, the price of a DVD is $18, and she is currently consuming 10 CDs and 5 DVDs, what is the consumer's income?

An increase in a perfectly competitive firm's demand for labor could be caused by

A) an increase in the supply of labor. B) a decrease in the market price of the product the firm produces. C) an increase in the amount of human capital among the labor force. D) a decrease in the market wage rate.

Refer to the information above. The "simple" accelerator model, first derived by American economist J.M. Clark in 1917, comes from setting

A) j = 0. B) j = 1. C) v* = 0. D) v* = 1.