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What is the primary lesson conveyed by the circular flow diagram in macroeconomics?
What is the primary lesson conveyed by the circular flow diagram in macroeconomics?
Total income in the economy must always equal total spending.
If real GDP in 2010 using 2009 prices is higher than nominal GDP of 2010, what can be inferred about prices in 2010 compared to the base year?
If real GDP in 2010 using 2009 prices is higher than nominal GDP of 2010, what can be inferred about prices in 2010 compared to the base year?
Prices in 2010 are lower than prices in the base year.
In the context of the private saving function, what is the relationship between household consumption and income?
In the context of the private saving function, what is the relationship between household consumption and income?
C = 200 + 0.2Y.
How does an increase in income affect consumption, given a constant marginal propensity to save?
How does an increase in income affect consumption, given a constant marginal propensity to save?
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What is the role of net taxes in determining the aggregate consumption function?
What is the role of net taxes in determining the aggregate consumption function?
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How does the aggregate demand function relate to the equilibrium GDP in a macroeconomic model?
How does the aggregate demand function relate to the equilibrium GDP in a macroeconomic model?
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What is the implication of the circular flow diagram in a macroeconomic model?
What is the implication of the circular flow diagram in a macroeconomic model?
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If nominal GDP in 2010 is lower than real GDP in 2010 using 2009 prices, what can be inferred about prices in 2010?
If nominal GDP in 2010 is lower than real GDP in 2010 using 2009 prices, what can be inferred about prices in 2010?
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What is the household's consumption function if the private saving function is represented in Figure 8.1?
What is the household's consumption function if the private saving function is represented in Figure 8.1?
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If the MPS equals 0.25, and consumption is $60,000 when income is $90,000, what is consumption when income increases to $100,000?
If the MPS equals 0.25, and consumption is $60,000 when income is $90,000, what is consumption when income increases to $100,000?
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What is the aggregate consumption function if C = 100 + 0.6Yd, and income is $1,000 with net taxes of $300?
What is the aggregate consumption function if C = 100 + 0.6Yd, and income is $1,000 with net taxes of $300?
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What is the equilibrium GDP for the Italian economy with the given data: C = 300 + 0.8Yd, G = 400, T = 200, and I = 200?
What is the equilibrium GDP for the Italian economy with the given data: C = 300 + 0.8Yd, G = 400, T = 200, and I = 200?
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