Refer to the data above. If consumption increases by $10 billion at each level of disposable income, the marginal propensity to consume will:
The disposable income (DI) and consumption (C) schedules are for a private, closed
economy. All figures are in billions of dollars.
A. Change, but the average propensity to consume will not change
B. Change, and the average propensity to consume will change
C. Not change, but the average propensity to consume will change
D. Not change, and the average propensity to consume will not change
C. Not change, but the average propensity to consume will change
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The norms, values, and aspirations of a group are directly observable
Indicate whether the statement is true or false
In the above figure, if the economy is in equilibrium at E1, then
A) the economy is producing below its potential long-run equilibrium at full employment. B) the economy is producing above its potential long-run equilibrium at full employment. C) there is an inflationary gap in the economy. D) the economy is in a period of high inflation.