If the government spending multiplier is 2 and government purchases increase by $200 billion, output will increase by
A. $100 billion.
B. $400 billion.
C. $500 billion.
D. $1,600 billion.
Answer: B
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The above figure shows the U.S. market for 1 carat diamonds. Area B + area D is the
A) decrease in consumer surplus due to the import quota. B) importers' profit from the quota. C) gain in total surplus due to the import quota. D) deadweight loss from the import quota. E) increase in producer surplus due to the import quota.
All people in the working-age population can be divided into
A) labor force participants. B) employed, unemployed, or not in the labor force. C) either over-employed or under-employed. D) potential employees.
Frictional unemployment is the temporary unemployment that results from the search time that occurs when people are searching for suitable jobs and firms are looking for suitable workers
a. True b. False Indicate whether the statement is true or false
Which of following is not an important category of bias in human decision making?
A. Limited processing power. B. Reluctance to change. C. Single-mindedness. D. Temptation.