Figure 10-2
At which point in is the economy at long-run equilibrium?
a.
J
b.
F
c.
G
d.
H
b
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The basic economic problem is a situation of
A) limited resources and unlimited wants. B) both limited resources and limited wants. C) limited incomes and unlimited choices. D) unlimited incomes and limited choices.
Rhode Island has enacted a substantial increase in the tax on employers that finances the workman's compensation system. For some employers, the tax is about $25 per $100 paid in wages. Employers claim they cannot afford to pay the tax. Under which of the following conditions will the actual burden of the tax fall on employers?
a. The employers' demand for labor is perfectly elastic. b. The supply of labor is perfectly inelastic. c. The employers' demand for labor is perfectly inelastic. d. The demand for the good they produce must be perfectly inelastic.
When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are
The spending multiplier is defined as:
A. the ratio of the change in equilibrium real GDP to the initial change in spending. B. the change in initial spending divided by the change in personal income. C. 1 / (marginal propensity to consume). D. 1 / (1 ? marginal propensity to save).