Author Question: Real income for a given year would be less than nominal income in that year if: a. the consumer ... (Read 136 times)

TVarnum · **on:** Jun 30, 2018

Real income for a given year would be less than nominal income in that year if:
a. the consumer price index was less than 100 in that year.
b. nominal income in that year was greater than nominal income in the previous year.
c. nominal income in that year was less than nominal income in the previous year.
d. the consumer price index was greater than 100 in that year.

Question 2

Following Keynesian economics, and assuming a marginal propensity to consume (MPC) of 0.75, an increase in taxes of 100 billion would be expected to shift the aggregate demand curve by 300 billion to the left.
a. True
b. False
Indicate whether the statement is true or false