In most countries today, many goods and services consumed are imported from abroad, and many goods and services produced are exported to foreign customers

Along the 45° reference line

A) the average propensity to consume is represented. B) planned real expenditures equal real disposable income. C) consumption expenditures equal saving. D) the relationship between consumption and income is represented.

We cannot be certain that a general sales tax will decrease labor supply because _____

a. of the effect of lower income on labor supply b. of the effect of higher tax revenue on consumption c. of the effect of the sales tax on labor supply d. we do not know about labor demand