The marginal propensity to consume measures
A) the cyclical deficit.
B) the structural deficit.
C) how much consumption expenditure occurs at the equilibrium level of income.
D) how much of a change in consumption expenditure results from a change in disposable income.
Correct Answer:
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Q1: Japan's population increased by 3 percent in
Q2: Suppose disposable income increases from $11 trillion
Q3: At potential GDP
A) there is no unemployment
Q5: The level of potential GDP
A) increases when
Q6: Business cycles result when
A) aggregate demand grows
Q7: If the economy is at the natural
Q8: A recessionary gap occurs when
A) the short-run
Q9: Keynesians and monetarists believe that economic fluctuations
Q10: The Keynesian aggregate expenditure model focuses on
Q11: Suppose that a severe shock that decreases
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