The process by which an original increase in aggregate expenditure cycles repeatedly through the economy, thereby producing a larger result, is called the exponential effect
a. True
b. False
Indicate whether the statement is true or false
False
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On a graph for the Gini Coefficient, perfect inequality would be represented by the equation ______.
a. G = -1 b. G = 0 c. G = 1 d. G = 100
If a supply-side economist were to make a suggestion to stimulate economic activity, which of the following policies would she suggest?
A. A repeal of regulations on business B. An increase in the minimum wage C. An increase in the corporate income tax D. The creation of employer-mandated benefits
Money spent on the purchase of a new house is included in the GDP as a part of:
A. Household expenditures on durable goods B. Personal consumption expenditures C. Personal saving D. Gross domestic private investment
According to the above figure, if the firm is earning zero economic profits, what quantity is the firm selling and at what price?
A) Q = 200; P = $4 B) Q = 1,000; P = $5 C) Q = 800; P = $4 D) Q = 1,200; P = $7