The multiplier is defined as:
A. 1 - MPS.
B. change in GDP × initial change in spending.
C. change in GDP/initial change in spending.
D. change in GDP - initial change in spending.
C. change in GDP/initial change in spending.
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The federal government of the United States was established as a federation of the governments of the original thirteen states
a. True b. False
We might predict that Japan has a comparative advantage compared to Russia in the production of hi-tech electronics because Japan has:
A. more land available to build manufacturing plants on. B. more unskilled labor available for production. C. a climate is more suitable for electronics. D. more advanced electronics technology.
If all of our GDP were distributed equally across the United States, each individual would receive:
A.) Their current income divided by the U.S. population. B.) The market value of final goods and services produced in the U.S. per year. C.) The value of total world output divided by the population. D.) The market value of final goods and services produced in the U.S. per year divided by the population.
Use the following graph for a competitive market to answer the question below.
A price floor of $25 per unit will result in a
A. surplus of 250 units. B. shortage of 250 units. C. shortage of 200 units. D. surplus of 200 units.