In the figure above, if the marginal propensity to import increased, the aggregate expenditure lines would ________ and the multiplier would ________ in value
A) become less steep; fall
B) become less steep; rise
C) become steeper; rise
D) not change; fall
E) not change; rise
A
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The economy’s self-correcting mechanism tends to push the unemployment rate back to a specific rate of unemployment. How?
What will be an ideal response?
To state that national saving is equal to investment, for a closed economy, is to state an accounting identity
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
a. Free trade benefits a country when it exports but harms it when it imports. b. "Voluntary" limits on Canadian exports of hogs are better for the United States than U.S. tariffs placed on Canadian hog exports. c. Tariffs and quotas differ in that tariffs work like a tax and therefore impose deadweight losses, whereas quotas do not impose deadweight losses. d. Free trade benefits a country both when it exports and when it imports.
Explain why featherbedding may or may not increase the demand for labor.
What will be an ideal response?