If the MPC is 0.5, then the spending multiplier must be:
A. 1.2.
B. 2.
C. 2.25.
D. 2.5.
B. 2.
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Perhaps the most compelling argument against the redistribution of income is that __________.
a. it does not work b. it is unfair c. we cannot afford it
The classical growth theory shows how technology changes continually generate economic growth
Indicate whether the statement is true or false
Which of the following is an outcome of advertising for a monopolistically competitive firm? a. Long-run average costs shift downward
b. The firm's demand curve becomes flatter and shifts inward. c. The firm's demand curve keeps the same slope and shifts inward. d. Long-run average costs shift upward.
GDP uses the market value of goods and services because it:
A. provides a common valuation that allows us to compare one economy to another. B. provides the opportunity to compare lists of outputs to see who produced more. C. is the only data that can be gathered about goods and services. D. markets are the only way to value goods and services.