Suppose Ahmoud Would Spend $1200 Per Year on Travel,even If

question 18

Multiple Choice

Suppose Ahmoud would spend $1200 per year on travel,even if his annual income were zero.As his income rises,he would spend 20% of each additional dollar of income on travel.Choose the correct mathematical equation that describes the functional relation between his travel spending (T) and his income (Y) .

• A)T = 0.2 + 1200Y
• B)Y = 1200 + 0.2T
• C)T = 1200 + 0.2Y
• D)Y = 1200 - 0.2T
• E)T = 1200 + 0.8Y

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Definitions:

Temporary-Help Industry

Refers to a sector comprising companies that provide employees to other businesses on a temporary basis. These firms often specialize in supplying temporary workers for office administration, industrial labor, or professional roles.

Natural Rate

The natural rate often refers to the natural rate of unemployment, which is the level of unemployment expected in an economy without short-term fluctuations.

Labor Force

The aggregate count of individuals who are either working or actively looking for work within a specific economy.

Unemployment Rate

The fraction of job-seekers within the labor force who do not have a job.