If the macroeconomic equilibrium is at less than full employment, then a. the aggregate supply curve is relatively flat b. the aggregate supply curve is vertical c. The change in consumption divided by the change in income is a. Keynes's absolute income hypothesis b. the marginal propensity to consume c. If stock market prices increase dramatically so that those who own stock perceive their wealth has increased then, ceteris paribus a. Suppose the economy is faced with the production possibility table shown below. There is a fall in the level of technology.
Interest rates rise.
The level of income rises. The level of income falls. The rate of capacity utilization is high and firms experience an increase in sales. In the circular flow model, a. households supply resources to firms through the resource market. All of the above e.