Which of the following programs are in-kind?
A. EITC
B. AFDC/TANF and EITC
C. AFDC/TANF
D. WIC
Answer: D
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Along the consumption function, an increase in disposable income will:
a. cause autonomous consumption to rise b. shift the consumption function upward. c. cause a corresponding downward shift of the saving function. d. cause a movement along the given consumption function. e. shift the consumption function downward.
If government spending increases, which of the following would be most likely in the short and in the long run? (Both comparisons are with regard to the original price level/output combination.)
a. Short-run increases in the price level, no change in output; long-run increases in output and in the price level b. Short-run increases in output and in the price level; long-run increase in output, decrease in the price level c. Short-run decreases in output and in the price level; long-run increase in the price level, no change in output d. Short-run increases in output and in the price level; long-run increase in the price level, no change in output e. Short-run decreases in output and in the price level; long-run decreases in output and in the price level