If the multiplier is 4, a decrease in spending equal to $80 billion will be accompanied by a decrease in GDP of
A. $480 billion.
B. $320 billion.
C. $240 billion.
D. $84 billion.
E. $48 billion.
Answer: B
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When firms have market power, it means that they:
A. can noticeably affect the market price. B. have no control over the market price. C. can noticeably affect the market quantity available for sale. D. do not noticeably affect the market quantity offered for sale.
Which of the following is an example of something economists study?
a. Mitch chooses to work overtime to earn extra income for his family. b. Megan sells her physics textbook from last semester to her roommate for half the price of a new textbook. c. The unemployment rate in the United States has fallen by two percentage points in the last few years. d. All of the above are correct.
The total revenue curve for a firm is given by TR = 2Q.
A. The firm may be a monopolist or a perfectly competitive firm. B. The firm is definitely not a monopolist. C. The firm is definitely a monopolist. D. One cannot tell from the equation what market form applies.
The illegal acts conducted by companies caught up in recent corporate scandals generally contain the word(s)
A. fraud. B. tax evasion. C. conflict of interest. D. money laundering.