Author Question: In the above figure, saving will equal zero when real disposable income equals A) 500. B) 600. C) ... (Read 88 times)

oliviahorn72

  • Hero Member
  • *****
  • Posts: 579
In the above figure, saving will equal zero when real disposable income equals
 
  A) 500. B) 600. C) 60. D) 0.

Question 2

Refer to the above figure. Suppose that the economy was originally at point A, and then it reached point C by means of a fiscal policy action. Which of the following is correct?
 
  A) Point C is both a short-run equilibrium and a long-run equilibrium that could have been attained through an increase in government spending.
  B) Point C is a short-run equilibrium that could have been attained through a reduction in government spending, but in the long run the economy will end up at point B.
  C) Point C is a short-run equilibrium that could have been attained through a tax cut, but in the long run the economy will end up at point B.
  D) Point C is a long-run equilibrium that could have been attained through a tax increase, although reaching this point first required a short-run equilibrium at point B.



jgranad15

  • Sr. Member
  • ****
  • Posts: 345
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

For a complete list of videos, visit our video library