A $100 billion increase in government spending increases Real GDP by $900 billion. Assuming a constant price level, what does the government spending multiplier equal?
A) 9
B) 900
C) 800
D) 8
E) 7
A
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Summarize the effects of a production quota on the market price and the quantity produced
What will be an ideal response?
Suppose a country experiencing hyperinflation for a long period of time chooses to use a historically stable currency, like the U.S. dollar, to increase investor and consumer confidence and provide a stable and secure economic and investment climate. This is an example of _____
a. globalization b. privatization c. dollarization d. standardization
Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce either 2 radios or 4 televisions per year. Each nation has 100 workers. Also suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each
year, then each country's maximum consumption of new radios and televisions per year will be a. 100 radios, 300 televisions in Radioland and 300 radios, 100 televisions in Teeveeland. b. 300 radios, 100 televisions in Radioland and 100 radios, 300 televisions in Teeveeland. c. 200 radios, 100 televisions in Radioland and 100 radios, 200 televisions in Teeveeland. d. 300 radios, 100 televisions in Radioland and 100 radios, 400 televisions in Teeveeland.
At a price of $100, Beachside Canoe Rentals rented 11 canoes. When it increased its rental price to $125, 9 canoes were rented. Calculate the absolute value of the price elasticity of demand for canoe rentals using the midpoint formula
A) 2
B) 1.25
C) 0.9
D) 0.75