Refer to the information provided in Table 24.6 below to answer the question(s) that follow.Table 24.6All Figures in Billions of Dollars
Refer to Table 24.6. The value of the government spending multiplier
A. is 10.
B. is 5.
C. is 0.9.
D. cannot be determined from the available information.
Answer: A
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Markets in which the Herfindahl-Hirschman index ________ are considered not concentrated
A) is less than 1,000 B) is between 1,800 and 2,000 C) is between 1,000 and 1,800 D) is above 2,000
Which statement is true?
A. Most strikes cause serious economic disruptions. B. The threat of a strike provides the motivation necessary to make collective bargaining work. C. Most labor unions enter collective bargaining hoping for a strike. D. None of the choices are true.
Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
A. people will forgo private consumption now as society substitutes government goods for private goods. B. people believe that they can consume the government provided goods and have future generations pay the bill. C. the interest rate on the debt will increase. D. that people do not realize that taxes have increased also.
Suppose the supply curve and the demand curve both have unitary elasticity at all prices. The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be
A) $1. B) 50 cents. C) zero. D) impossible to calculate without knowing the slope of the supply curve.