Suppose the marginal propensity to consume is 0.80 and equilibrium GDP resulting from a change in investment spending falls by -$500 billion. What must have been the initial change in investment spending
a. $100 billion
b. -$100 billion
c. $500 billion
d. -$500 billion
e. -$400 billion
B
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The Average Product of Labor is
A) the change in total product resulting from an extra unit of labor, holding other factors constant. B) the ratio of output to the number of workers used to produce that output. C) the amount of output that can be produced by a given amount of labor. D) equal to the marginal product of labor when the average product is increasing.
The U.S. Census Bureau considers in-kind transfers (such as employer provided benefits) when measuring income
a. True b. False
For which of the following is demand likely to be the most price elastic?
a. a good for which there are no close substitutes b. a good for which there are no easily-obtained substitutes c. a good with close substitutes that are difficult to obtain d. a good that is no longer being produced e. a good for which close substitutes are easily obtained
One of the principal factors behind the U.S. trade deficits of the 1990s has been
a. slow growth and recession in many important trading partners. b. rapid growth and inflation in many important trading partners. c. significant depreciation of the dollar. d. rising real interest rates in the United States.