OPEC is a classic example of a kinked-demand curve oligopoly.

Which of the following will most likely cause a shift in the consumption function?

a. a change in consumer confidence b. a change in national output c. a change in real GDP d. a change in disposable income

Without a change in discretionary fiscal policy, we would expect that if the economy goes into recession, then the:

A. Cyclically-adjusted deficit and the actual deficit would both increase B. Cyclically-adjusted deficit and the actual deficit would both decrease C. Cyclically-adjusted deficit would stay the same while the actual deficit would increase D. Cyclically-adjusted deficit would increase while the actual deficit would stay the same