On a Graph Showing Real National Income on the Vertical

question 51

Multiple Choice

On a graph showing real national income on the vertical axis and time on the horizontal axis,the trend-line would probably be a good approximation of the

• A)business cycle.
• B)distribution of income.
• C)inflation rate.
• D)path of potential output.
• E)unemployment rate.

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Definitions:

Incomes

Earnings accrued, especially periodically, from labor or investment gains.

Freedom To Farm Act

A U.S. federal law enacted in 1996 aimed at allowing farmers greater management flexibility in what they plant and produce.

Agricultural Price Supports

Government interventions to stabilize or increase agricultural product prices through mechanisms such as subsidies or purchase commitments.

Acreage Allotments

A pre-1996 government program that limited the total number of acres to be used in producing (reduced amounts of) various food and fiber products and allocated these acres among individual farmers. These farmers had to limit their plantings to the allotted number of acres to obtain price supports for their crops.