Assume that full-employment real GDP is Y = $1,200 billion, the current equilibrium real GDP is Y = $800 billion, and the MPC is 0.50 . What level of aggregate expenditures will close the recessionary gap?
a. $50 billion.
b. $80 billion.
c. $140 billion.
d. $200 billion.
e. $400 billion.
d
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If the value of marginal product of a worker is $40 and the marginal product of the worker is 8 units, the market price of the good he produces is:
A) $2. B) $5. C) $8. D) $10.
Answer the following statements true (T) or false (F)
1) Vertical integration can only occur when a firm acquires a firm that is closer to the consumer. 2) A transaction cost is the cost of using a market plus the price of the good or service. 3) If a firm produces at more than one stage of the supply chain, the firm is vertically integrated. 4) Firms that set their transfer prices equal to the price charged to an independent customer violate laws in many nations. 5) If a German firm owns a U.S.-based firm, the combined firm is subject to the corporate tax laws in Germany.
Without an accepted medium of exchange, people
A. have to specialize in one area of production. B. have to rely on barter in order to exchange goods and services. C. have to use credit to obtain goods and services. D. have to rely on gold or silver in order to exchange goods and services.
To compute GDP, you must add up the value of all the goods and services produced in a country in a year.
Answer the following statement true (T) or false (F)