The long-run response to an increase in the growth rate of the money supply is shown by shifting
a. the short-run and long-run Phillips curves left.
b. the short-run and long-run Phillips curves right.
c. only the short-run Phillips curve left.
d. only the short-run Phillips curve right.
d
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If the demand for apples is highly elastic and the supply is highly inelastic, then a tax imposed on apples will be paid: a. largely by the sellers of apples with more elastic supply. b. largely by the buyers of apples with more elastic demand. c. equally by the sellers and buyers of apples
d. largely by the sellers of apples with less elastic supply.
Answer the following statements true (T) or false (F)
1) If DI is $275 billion and the APC is 0.8, we can conclude that saving is $55 billion. 2) If the MPC is constant at various levels of income, then the APC must also be constant at all of those income levels. 3) The average propensity to consume is defined as income divided by consumption. 4) 1 - MPC = MPS. 5) If the Hennige family's marginal propensity to consume is .70, then it will necessarily consume seven-tenths of its total income.