D. A sharp increase in the natural rate of unemployment
A. Very high debt levels of households
B. Consumers raised their saving rates
C. The stimulus package caused prices to fall in many sectors
D. The effects of the stimulus package were diffuse and spread thinly among many sectors
C. The stimulus package caused prices to fall in many sectors
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In the table above, the marginal benefit of the 4 millionth television set is
A) negative 0.5 computers per television set. B) 0.25 computers per television set. C) 0.5 computers per television set. D) 1.0 computer per television set.
Assume the marginal propensity to consume is 0.96 . Firms become pessimistic and decrease investment spending by $100 billion. Other things equal, real GDP will:
a. decrease by $100 billion. b. not change. c. decrease by $96 billion. d. decrease by $2,500 billion.
Other things remaining the same, if a large part of the population decided against having soda for health reasons, there would be a(n):
a. increase in the quantity of soda supplied. b. increase in the quantity supplied of complements like fries and burgers. c. decrease in the price of soda. d. rightward shift of the demand curve for soda. e. decrease in the quantity demanded of substitutes like mineral water.
Suppose that average labor productivity in Country C is $6,000, and that Countries C and A have the same real GDP per capita. Based on the information in the table, what must be the average labor productivity in Country A?CountryPopulation (millions)Share of Population Employed (%)A10060B15055C7550D25045E9540
A. $1,800 B. $5,000 C. $2,400 D. $7,200