If the economy is in equilibrium and suddenly the level of planned investment increases by $2 billion, national income will increase by
a. $2 billion and stabilize at that level.
b. less than $2 billion because of MPS.
c. more than $2 billion because of MPC.
d. less than $2 billion because of MPC.
c. more than $2 billion because of MPC.
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Using the data in the above table, the labor force is ________ million
A) 215 B) 120 C) 125 D) 165
Refer to the following graph. Which of the following reflects government expansionary fiscal or monetary policy which would fail to increase real income?
a. An increase in aggregate demand from AD1 to AD2.
b. An increase in aggregate demand from AD2 to AD3.
c. An increase in aggregate demand from AD3 to AD4.
d. An increase in aggregate demand from AD4 to AD5.
Inflation reduction has the lowest cost when the efforts are
a. credible so that the sacrifice ratio is low. b. credible so that the sacrifice ratio is high. c. unexpected so that the sacrifice ratio is high. d. unexpected so that the sacrifice ratio is low.
Name and discuss three factors that move the labor supply curve to the right.
What will be an ideal response?