If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is
A) 0.9. B) 0.8. C) 0.75. D) 0.6.
A
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
If you worked 35 hours a week at a minimum wage job you could ________ a family of four above the poverty line.
A. easily keep B. barely keep C. not come close to keeping
Entrepreneurs are unnecessary in a market economy, and their profit is unearned.
Answer the following statement true (T) or false (F)
Assume that an economy has 1500 workers, each working 2000 hours per year. If the average real output per worker-hour is $20, then total output or real GDP will be:
A. $3 million B. $30 million C. $45 million D. $60 million