The impact of an expansionary fiscal policy may be strengthened if it crowds out some private investment spending.
Answer the following statement true (T) or false (F)
False
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You get bit by your neighbor's dog, and incur $200 in emergency medical expenses. What happens to GDP?
A) It increases by $200. B) It decreases by $200. C) It remains unchanged. D) It depends upon whether you or the dog owner pays the medical bill.
How will an increase in labor productivity affect equilibrium in the labor market?
A) The demand for labor will increase and the equilibrium wage and quantity of labor will increase. B) The demand for labor will decrease because fewer workers will be needed to produce the same output. The equilibrium wage and quantity of labor will decrease. C) The supply of labor will increase and the equilibrium wage and quantity of labor will increase. D) The demand for jobs will increase and the equilibrium wage and quantity of labor will increase.
Explain the reasons firms might follow the Baumol model of maximizing revenue subject to achieving a minimum level of profits
What will be an ideal response?
According to the information in Scenario 15.5, if Catherine's life expectancy is 80 as a non-smoker and no inflation is expected to occur throughout her life (so that cigarettes stay at $2 per pack), then amount would she save by not buying cigarettes?
A) $4 B) $1460 C) $29,200 D) $87,600 E) $116,800