If the MPC is 0.6, and the government increases its spending by $300b, the overall effect on GDP will be:
A. a decrease of $750b.
B. a decrease of $550b.
C. an increase of $750b.
D. an increase of $250b.
Answer: C
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Which of the following would be classified as private investment spending?
a. A family's purchase of a new home b. An automobile producer's purchase of steel for use in building new cars c. A paper company's purchase of timber d. A household's purchase of AT&T stock e. The government's purchase of a new office building
In the open-economy macroeconomic model, the market for loanable funds equates national saving with
a. domestic investment. b. net capital outflow. c. the sum of national consumption and government spending. d. the sum of domestic investment and net capital outflow.
The definition of a job loser is an individual
A. who quits his job voluntarily. B. who is underemployed. C. who competed for a promotion at his company and did not get it. D. whose employment was terminated involuntarily due to a downturn in the economy.
Productivity is output per worker hour.
Answer the following statement true (T) or false (F)