Refer to the budget line shown in the diagram. The absolute value of the slope of the budget line is:

What is the aggregate demand multiplier and why does it occur?

What will be an ideal response?

Which of the following is an example of transitory income?

a. John's $30,000 per year salary as a junior high school science teacher b. Linda's $40,000 per month income from bond market investments c. Paul's $15 per week earnings from selling aluminum cans he collects from along the side of the road d. Ringo's $100 prize for winning a radio talk-show contest e. George's $6,000 per year earnings in his second job, moonlighting as a clerk in a video rental store