The Congressional Budget Office and the Office of Management and Budget each produce deficit forecasts for a fiscal year. They use models that are mostly similar but have notable differences. As such, the disagreements are likely usually over
a. normative issues
b. positive issues
c. the mathematical calculations in an economic model
d. whether microeconomics or macroeconomics is more important
e. whether economic theory is useful in explaining the behavior of actors in the economy
B
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If the marginal propensity to consume (MPC) is 0.8, the multiplier is
A) 0.8. B) 5.0. C) 1.2. D) 0.2.
The graph shows the labor market for teenagers in Atlanta. If the government sets a minimum wage of $6 an hour, the number of teenagers employed is ________
A) 7,000 B) 5,000 C) 4,000 D) 3,000 E) less than 3,000
As one moves down along a linear demand curve (i.e., from high price, low quantity pairs to low price, high quantity pairs), demand:
A. increases. B. becomes more elastic. C. becomes less elastic. D. decreases.
Refer to the above figure. If flow (1) is the cost businesses pay to the resource market, then:
A. (4) is the flow of goods and services. B. (6) is the flow of money income. C. (7) is the flow of revenue. D. (2) is the flow of productive resources.