The effect on short-run equilibrium output of a one-unit increase in autonomous expenditure is called:
A. Okun's law.
B. average labor productivity.
C. the income-expenditure multiplier.
D. the marginal propensity to consume.
Answer: C
You might also like to view...
Which of the following is a characteristic of an oligopolistic industry?
a. interdependence of a firm's price and output decisions b. low barriers to entry c. small output of individual firms relative to the total market d. a large number of competing firms
Tight monetary policy will ________ net exports as a result of a ________ currency.
A. decrease; stronger B. increase; weaker C. increase; stronger D. decrease; weaker
Economists define technology as
A) machines such as computers. B) entrepreneurship. C) absolute advantage. D) society's knowledge concerning the production of goods.
Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,200 to kids attending the prom
The total contribution to GDP of this series of transactions is: A. $1,200. B. $500. C. $2,300. D. $1,100.