If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP $200 billion, then by how much would they have to change taxes?
A. ?$240 million.
B. ?$200 million.
C. ?$180 million.
D. ?$50 million.
Answer: D
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Assume an economy produces only footballs and baseballs and the base year is 2005. Quantity producedPrices 2005200620052006Footballs200300$20$25Baseballs500600$10$15Given the data in the table above, what is the value of real GDP in 2006?
A. $12,500 B. $10,000 C. $ 9,000 D. $12, 000
Which of the following strategies does your text suggest would allow a poorer nation to "catch up" to richer nations?
A) Unionization B) Higher minimum wages C) Lower interest rates D) Adoption of advanced technology E) Minimizing imports and maximizing exports
A typical 50-year-old male earns: a. one-third more than a male in his early 20s
b. nearly twice the income of a male in his early 20s. c. one-third less than workers over 65. d. nearly twice the income of workers over 65.
Refer to the following graph to answer the question:
Suppose price rises from $90 to $110. Using representative arrows, the price effect is a relatively ________ (short, long) arrow pointing ________ (upward, downward).
A. long; downward B. short; upward C. short; downward D. long; upward