Suppose that the value of the multiplier has increased in recent years. Which of the following could have caused this?
A. Changes in the way the unemployment compensation fund is financed have made it more expensive for firms to lay off workers.
B. "Buy America" campaigns launched by many unions have succeeded in reducing the demand for imported goods.
C. Consumption has become more sensitive to changes in the interest rate.
D. The costs of inventory storage have fallen.
Answer: B
You might also like to view...
If the number of potential workers in a country is 25 million, and the size of the labor force in the country is 17 million, the number of adults not in the work force will equal:
A) 43 million. B) 8 million. C) 25 million. D) 17 million.
In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds and ________ investment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Refer to Table 27-4. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be lower than if Congress and the president had taken no action? A) potential GDP and the inflation rate B) real GDP and the unemployment rate C) real GDP and potential GDP D) real GDP and the inflation rate
If a consumer is choosing the optimal combinations of two goods X and Y, and then the price of good Y decreases, this causes:
a. MU/P of good X to increase, so the consumer now must buy more X to find a new optimal combination. b. demand for good X to increase. c. MU/P of good Y to increase, so the consumer now must buy more Y to find a new optimal combination. d. MU/P of good Y to decrease, so the consumer now must buy more Y to find a new optimal combination. e. the demand for good X and good Y will not change.