In the Keynesian model, an increase in real autonomous spending results in a greater increase in real Gross Domestic Product (GDP) if
A) the marginal propensity to consume (MPC) is lower.
B) the marginal propensity to consume (MPC) is higher.
C) the average propensity to save (APS) is higher.
D) the average propensity to save (APS) is lower.
B
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Refer to Mexico and Japan. Which of the following statements is true.
a. Mexico has a comparative advantage in production of food.
b. Japan has an absolute advantage in production of food.
c. Mexico has a comparative advantage in production of cloth.
d. Japan has an absolute advantage in production of Cloth.
For which of the following purchases would the absolute price elasticity of demand be smallest?
A) a sports car B) utilities C) chewing gum D) a cell phone
If M increases, and V remains constant: a. P must rise
b. Q must rise. c. P and Q must each rise. d. Any of the above may happen, but none of the above must happen.
The labor supply curve facing an individual employer in a perfectly competitive labor market is:
A. upward sloping. B. downward sloping. C. horizontal. D. the MRP curve.