Recently, the level of GDP has declined by $60 billion in an economy where the marginal propensity to consume is 0.75. Aggregate expenditures must have fallen by
A. $15 billion.
B. $30 billion.
C. $45 billion.
D. $60 billion.
Answer: A
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At the time of the South Korean financial crisis, the government allowed many chaebol owned finance companies to convert to merchant banks. Finance companies ________ allowed to borrow abroad and merchant banks ________
A) were not; could borrow abroad B) were not; could not borrow abroad C) were; could borrow abroad D) were; could not borrow abroad
Ben consumes soda and cheeseburgers. If his total utility from sodas is currently 40, and his total utility from cheeseburgers is 30, and the price of cheeseburgers is twice the price of sodas, a. Ben is in equilibrium
b. Ben should increase his soda consumption and decrease his cheeseburger consumption. c. Ben should decrease his soda consumption and increase his cheeseburger consumption. d. we cannot conclude that any of the above are correct.
Longer time frames generally result in less elastic supply
a. True b. False Indicate whether the statement is true or false
The air force just hired a defense contractor to produce one hundred fighter jets. This action answered which basic economic question?
a. What is the best method of production? b. How will the goods and services be produced? c. Who will get the goods and services? d. What goods and services will be produced?