If the MPC = 0.80, the government purchases multiplier is
A) 2.
B) 4.
C) 5.
D) 8.
C
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Suppose consumers decide they value a product more highly than before. Then the efficient quantity to produce of that product ________
A) increases B) does not change C) decreases D) perhaps changes, but without more information the direction of the change cannot be told
In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Percentage change in nominal GDP during the past year b. Current unemployment rate and labor force participation rate c. Annual inflation rate during the past year d. Current real exchange rate e. Current nominal exchange rate
Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be:
a) deflated to $678 billion. b) deflated to $896 billion. c) inflated to $1080 billion. d) deflated to $1080 billion.
A decrease in dividend payments will
A. lead to a decrease in labor supply. B. lead to an increase in labor supply. C. have no effect on labor supply. D. either lead to an increase or decrease in labor supply depending on the relative magnitude of the income and substitution effects.