Why might the response of far-sighted consumers reduce the multiplier effect of an increase in government expenditures?
Consumers may recognize that borrowing now to finance expenditures means higher future taxes so they reduce current expenditures in anticipation of higher future taxes.
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If you remove resources from factory production, the quantity of factory goods will
A) increase. B) decrease. C) be diverted to other production. D) remain the same but their price will decrease.
Refer to Table 8-14. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2016 equals
A) 92.2. B) 102.6. C) 108.5. D) 109.1.
An isoquant identifies all of the combinations of two inputs that result in the same total costs of production
Indicate whether the statement is true or false
Use the following graph to answer the question below.
If the price increases from P1 to P2, then the total revenue will gain areas
A. E + F + G, but it will lose area J. B. B + E, but it will lose areas H + I + J. C. A + B + C, but it will lose areas G + I + J. D. C + F + H, but it will lose area J.