In an economy with a population of 100 million persons, 40 million hold civilian jobs and 9 million are not working but are looking for a job. The number of persons in the civilian labor force is
A. 51 million.
B. 60 million.
C. 91 million.
D. 49 million..
Answer: A. 51 million.
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Use the following graph to answer the next question. Which of the following statements is correct on the basis of the information shown?
A. The GDP price index equals 100 in 2000. B. The GDP price index is less than 100 in 2010 C. The GDP price index is greater than 100 in 1990. D. Without additional data, the value of the GDP price index cannot be known for any year in the graph above.
Suppose the price of cheese rises. In the market for pizza, one would expect that
A) the supply of pizza would increase, and the price would fall. B) the demand for pizza would increase, and the price would increase. C) the demand for pizza would decrease, and price would fall. D) the supply of pizza would decrease, and price would rise.
A lower domestic price level tends to:
a. reduce aggregate expenditures and lower the aggregate quantity of goods and services supplied. b. reduce aggregate expenditures and lower aggregate demand. c. reduce aggregate expenditures and raise aggregate demand. d. increase aggregate expenditures and raise the aggregate quantity of goods and services demanded. e. increase aggregate expenditure on foreign goods and lower net exports.
Given a $500 billion AD shortfall and an MPC of 0.75, the desired fiscal stimulus would be
A. A $2 trillion increase in government expenditures. B. A $375 billion increase in government expenditures. C. A $125 billion increase in government expenditures. D. A $500 billion increase in government expenditures.