Businesses in the United States cut their investment projects by $30 billion. If the MPC is 2, what will be the impact on the national income (Y)?
a. Y will fall by $15 billion.
b. Y will fall by $30 billion.
c. Y will fall by $60 billion.
d. Y will fall by $120 billion.
c
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Which theory of economic growth concludes that growth can continue indefinitely?
A) the classical theory B) the neoclassical theory C) the new theory D) all of the theories
Economists usually suggest that the best way to examine the deficit is by expressing it:
A. as a percentage of GDP. B. in real terms. C. in nominal terms. D. None of these is true.
Over the last 30 years, the income gap between the rich and the poor has declined
a. True b. False Indicate whether the statement is true or false
Keynes believed in all of the following, EXCEPT
A. The ideas of economists and political philosophers are more powerful than is commonly understood. B. The problem with recessions was inadequate aggregate demand. C. Say's Law. D. There was absolutely nothing wrong with deficits during recessions and depressions.