This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that people experience a one-time 50 unit increase in their consumption (i.e. the intercept ... (Read 24 times)

melina_rosy

  • Hero Member
  • *****
  • Posts: 531
on: Jun 30, 2018
Assume that people experience a one-time 50 unit increase in their consumption (i.e. the intercept of the consumption function increases by 50). In this case
 
  a. equilibrium income will rise by 50 units times the investment multiplier.
  b. equilibrium income will rise by 50 units.
  c. equilibrium income will rise by 50 units times the tax multiplier.
  d. equilibrium income will not change because this increase is temporary.

Question 2

In the event of deflation, or negative inflation, then
 
  a. real GDP is always lower than nominal GDP.
  b. real GDP is always lower than nominal GDP after the base year.
  c. real GDP is always lower than nominal GDP.
  d. real GDP is always higher than nominal GDP before the base year.
  e. None of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

chinwesucks

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

E


melina_rosy

  • Member
  • Posts: 531
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

AISCAMPING

  • Member
  • Posts: 347
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

This portrait of Thomas Jefferson is considered an accurate likeness, painted when he was thirty-sev This portrait of Thomas Jefferson is considered an accurate likeness, painted when he was thirty-sev
Men experience more trauma in their lifetimes, but women are more likely to develop PTSD. Men experience more trauma in their lifetimes, but women are more likely to develop PTSD.
Nonlinear increase in saturation vapor pressure with increase in temperature. Nonlinear increase in saturation vapor pressure with increase in temperature.
Effect of an Increase in Technological Progress Effect of an Increase in Technological Progress
The time spent in each interval of one complete cell cycle of a human cell in culture The time spent in each interval of one complete cell cycle of a human cell in culture
How high a hill would a 75-kg hiker have to climb to increase her gravitational potential ... How high a hill would a 75-kg hiker have to climb to increase her gravitational potential ...
Video: Acid-base imbalances - metabolic acidosis and alkalosis

For a complete list of videos, visit our video library