If an increase in investment spending of $50 million results in a $400 million increase in equilibrium real GDP, then
a. the multiplier is 0.125.
b. the multiplier is 3.5.
c. the multiplier is 8.
d. the multiplier is 50.
c. the multiplier is 8.
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What will be an ideal response?
The proper short-run goal of macroeconomic policymakers is to
A) amplify the business cycle. B) dampen the business cycle. C) promote high economic growth. D) maintain low economic growth.
Social Security is a mixture of distinct programs; each has a different source of funding
Indicate whether the statement is true or false
Zero economic profits for a perfectly competitive firm in the long run means
A. the firm must exit the industry. B. the firm is in equilibrium. C. the firm will shut down until the market improves. D. average revenue is insufficient to cover long-run average cost.