Author Question: Personal income is: a. total income received by households before taxes. b. the amount households ... (Read 116 times)

hbsimmons88 · **on:** Jun 30, 2018

Personal income is:
a. total income received by households before taxes.
b. the amount households have available for consumption, savings, and payment of personal taxes.
c. national income minus corporate profits and Social Security (FICA) plus transfer payments, and other income.
d. all of these.

Question 2

The aggregate demand curve is downward sloping because:
a. an increase in the price level will cause an increase in spending.
b. at lower price levels, real wealth decreases, causing a decrease in the quantities of goods and services demanded.
c. at lower price levels, interest rates decrease, causing a decrease in the quantities of goods and services demanded.
d. at lower price levels, exports increase, causing an increase in real GDP.
e. increases in the price level do not affect people's real wealth.