Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . A decrease in government spending of $1 billion would result in a decrease in GDP of:
a. $0.
b. $0.9 billion.
c. $1.0 billion.
d. $9.0 billion.
e. $10.0 billion.
e
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The basic equation for a bank’s balance sheet is ____.
A. assets = liabilities ? net worth B. net worth = assets ? liabilities C. net worth = assets + liabilities D. liabilities = net worth + assets
When a country's production possibilities frontier shifts outward over time, the country is experiencing
A) no opportunity cost. B) economic growth. C) higher unemployment of resources. D) a decrease in unemployment of resources. E) an end to opportunity cost.
In the above figure, the efficient quantity is
A) 0 units. B) 70 units. C) 80 units. D) 100 units.
The MRP of labor will shift to the left if
A. wages decrease. B. labor productivity decreases. C. labor productivity increases. D. wages increase.