The multiplier shows that as __________ changes, real GDP changes by a __________ amount
a) induced expenditure; larger
b) induced expenditure; smaller
c) autonomous expenditure; larger
d) autonomous expenditure; smaller
c) autonomous expenditure; larger
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Use the following graph to answer the next question.
Which point is not on the perfectly competitive firm's short-run supply curve?
A. E B. F C. G D. H
What happens when the Federal Reserve purchases U.S. government bonds?
A) Interest rates rise because bonds become scarcer. B) Commercial bank reserves increase. C) The national debt declines in size. D) The growth rate of the money stock falls. E) All of the above occur.
Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The marginal cost of the 5th T-shirt is
A) 2. B) 10. C) 12. D) 60.
A coordination problem arises whenever there:
A. are multiple Nash equilibria. B. is a unique Nash equilibrium but it is not very desirable. C. are no dominant strategies for both players. D. is no Nash equilibrium in a game.