The change in real GDP resulting from an initial change in spending can be calculated by:
A. Dividing the multiplier by the initial change in spending
B. Dividing the initial change in spending by the multiplier
C. Multiplying the multiplier by the initial change in spending
D. Adding the initial change in spending to the multiplier
C. Multiplying the multiplier by the initial change in spending
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If total profit is at a maximum, then average profit is zero
a. True b. False Indicate whether the statement is true or false
The slope of the budget constraint reveals the relative price of good X compared to good Y
a. True b. False Indicate whether the statement is true or false
When does a shortage occur?
a. When price is less than equilibrium price. b. When goods are scarce. c. When quantity demanded is less than quantity supplied. d. When quantity demanded exceeds quantity supplied at the equilibrium price. e. When some of the people who need the product are not willing and able to buy it at the equilibrium price.
The best example of an increase in capital is:
A) The discovery of new oil reserves. B) new computer software. C) legal immigration of computer programmers. D) conversion of military facilities to civilian uses.