The multiplier can be calculated by dividing:
a. The initial change in spending by the change in real GDP
b. One by one minus the marginal propensity to invest
c. The change in real GDP by the initial change in spending
d. One by one minus the marginal propensity to save
c. The change in real GDP by the initial change in spending
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The curve labeled A in the above figure is
A) a short-run aggregate supply curve. B) an aggregate demand curve. C) a long-run aggregate supply curve. D) a production possibilities curve.
Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed
A) structurally; frictionally B) structurally; structurally C) frictionally; frictionally D) frictionally; structurally
Temporary, short-term discount loans to banks in areas in which agriculture and tourism are important are known as
A) primary credit. B) secondary credit. C) seasonal credit. D) repo loans.
If the short-run Phillips curve shifts to the right, we can conclude that:
a. the trade-off between inflation and unemployment has improved over time. b. the trade-off between inflation and unemployment has worsened over time. c. the inflation rate associated with any given level of unemployment has declined. d. the unemployment rate associated with any given inflation rate has declined. e. the trade-off between inflation and unemployment has remained unchanged.