If the MPC = .75, the spending multiplier is:
a. 4.
b. 5.
c. 1.33.
d. 1.20.
e. .25.
a
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In the figure above, U.S. consumers buy ________ airplanes per year at ________ million per airplane
A) 200; $150 B) 400; $100 C) 700; $150 D) 400; $150 E) 200; $100
Because consumers value product variety
A) society must be more efficient with monopolistic competition than with perfect competition. B) the inefficiency and deadweight loss created by monopolistic competition is offset. C) in the long run, monopolistically competitive firms earn an economic profit. D) monopolistically competitive industries are efficient.
The aggregate demand and aggregate supply graph has the
a. quantity of output on the horizontal axis. Output is best measured by real GDP. b. quantity of output on the horizontal axis. Output is best measured by nominal GDP. c. quantity of output on the vertical axis. Output is best measured by real GDP. d. quantity of output on the vertical axis. Output is best measured by nominal GDP.
If the price a firm charges in a perfectly competitive industry is greater than average total cost:
A. the firm is earning an economic profit equal to zero. B. the firm is earning an economic profit greater than zero. C. the firm is earning an economic profit less than zero. D. it is not possible to determine anything about profits.