Author Question: The consumption function is the relationship between ________, other things remaining the same. ... (Read 124 times)

yoooooman · **on:** Jun 29, 2018

The consumption function is the relationship between ________, other things remaining the same.

A) consumption expenditure and net taxes
B) net taxes and disposable income
C) consumption expenditure and the price level
D) consumption expenditure and disposable income
E) consumption expenditure and saving

Question 2

The figure above shows the U.S. supply of labor curve. An increase in the income tax rate leads to a

A) movement downward along the supply of labor curve from a point such as A to a point such as B.
B) leftward shift of the supply of labor curve.
C) rightward shift of the supply of labor curve.
D) movement upward along the supply of labor curve from a point such as C to a point such as B.
E) None of the above answers is correct because there is no change in the supply of labor curve.