If the MPC in an economy is .75, a $1 billion increase in taxes will ultimately reduce consumption by:
A. $1 billion.
B. $0.75 billion.
C. $3 billion.
D. $4 billion.
C. $3 billion.
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The GDP of Country X in a particular year was $820,000. If the value added by U.S
workers in the production of various goods and services in Country X during that year was worth $150,000 and the value added by the workers of Country X in the production of various goods and services in other countries during that year was worth $130,000, the GNP of Country X during that year was ________. A) $1,140,000 B) $135,000 C) $8,235,000 D) $800,000
An increase in the U.S. demand for imports will ________ the supply of dollars and lead the dollar to ________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
Suppose consumption decreases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________
A) increases; leftward B) decreases; leftward C) increases; rightward D) decreases; rightward
Which of the following is a sign of a well-functioning labor market?
A. a constant unemployment rate B. equal pay for all workers C. a high degree of labor mobility (job losses and job gains) D. All workers have a college education. E. equal pay in all regions