Economics

An economy in long-run equilibrium experiences an increase in aggregat

An economy in long-run equilibrium experiences an increase in aggregate demand. According to the classical model, A) the price level will increase, but real GDP will not change. B) the price level and real GDP will increase at the same time. C) the price level will increase, but real GDP will decrease. D) the price […]

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Date: September 2nd, 2020

The consumption function shows how much A) households plan to consume

The consumption function shows how much A) households plan to consume per year at each possible interest rate. B) real disposable income people will earn at each income tax bracket. C) households plan to consume per year at each level of real disposable income. D) households plan to consume per year at each level of […]

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Date: September 2nd, 2020

When the government grants an inventor a patent A) he has the exclusi

When the government grants an inventor a patent A) he has the exclusive right to make, sell or use his invention for 5 years. B) the protection of a current invention would increase spending on R&D. C) the patent holder has less incentive to invest in R&D because one successful invention removes the need to […]

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Date: September 2nd, 2020

According to Keynes A) consumption is directly related to income but

According to Keynes A) consumption is directly related to income but saving has no relationship with income. B) consumption is directly related to income but saving is inversely related to income. C) both consumption and saving are positively related to real disposable income. D) consumption is positively related to the interest rate.   ANSWER C

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Date: September 2nd, 2020