Automatic stabilizers stabilize the level of real GDP because:
A. Congress quickly passes laws that change spending and tax revenue.
B. federal expenditures and tax revenues change as the level of real GDP changes.
C. the spending and tax multiplier are constant.
D. wages are controlled by the minimum wage law.
Answer: B
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What happens to the present value of $1 one year from now if the market rate of interest falls? Explain
What will be an ideal response?
A decrease in the price of good Y will have what effect on the budget line on a normal X-Y graph?
A. Decrease the horizontal intercept B. Parallel inward shift of the line C. Parallel outward shift of the line D. Increase the vertical intercept
The two basic types of government regulation are
A. social regulation and labor law. B. social regulation and economic regulation. C. economic regulation and industry regulation. D. regulation of natural monopolies and regulation of cartels.
Refer to the information provided in Figure 23.12 below to answer the question(s) that follow.
Figure 23.12Refer to Figure 23.12. Suppose the economy's aggregate expenditure line is AE2. A $10 million increase in planned investment causes aggregate equilibrium output to increase to
A. $1,440.5 million. B. $1,510 million. C. $1,516.7 million. D. $1,525 million.