The multiplier effect suggests that:
A. spending $1 increases GDP by more than $1.
B. spending $1 increases GDP by less than $1.
C. saving $1 increases GDP by more than $1.
D. spending $1 decreases GDP by more than $1.
A. spending $1 increases GDP by more than $1.
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The official U-3 unemployment rate includes the total number of people who
A) have jobs or are currently looking for jobs. B) are available and looking for work but unable to find employment. C) would like to have a job but have stopped seeking work. D) would like to have a full-time job but are working part-time.
Empirical evidence shows that prices are sticky ________
A) in all sectors of the economy B) in hardly any sectors of the economy C) except in response to changes within individual markets D) all of the above E) none of the above
On the graph above, an increase in government spending, with no change in taxes, is likely to move the economy from point 1 to point ________
A) 8 B) 6 C) 3 D) 5
Between the second quarter of 2006 and the first quarter of 2009, the value of housing wealth
A. increased by about $500 billion. B. increased by about $13 trillion. C. decreased by about $7 trillion. D. decreased by about $600 billion.