If MPC is .5 and government spending declines by $10 billion, then GDP will fall by _______.
Fill in the blank(s) with the appropriate word(s).
$20 billion
You might also like to view...
The budget constraint represents:
a. all possible consumption combinations of goods that someone can afford when all income is spent. b. a single consumption combination of goods that someone can afford when all income is spent. c. all possible consumption combinations of goods that someone can afford when disposable income is spent. d. all possible consumption combinations of goods that society can afford when all income is spent.
The supply of both physical and human resources in the long run is determined primarily by
a. the presence or absence of economies of scale. b. investment choices and resource depreciation. c. sunk costs; what happens in the present cannot change the future. d. the law of diminishing marginal returns.
Taxes on labor tend to encourage the elderly to retire early
a. True b. False Indicate whether the statement is true or false
Managed care:
a. is becoming less widespread in medical care delivery. b. provides a mechanism that shifts a portion of the financial risk onto patients and providers. c. recognizes and maintains separate responsibilities for the payer and the provider of medical services. d. provides retrospective payment determined by the amount of services provided to a patient. e. focuses cost-containment strategies on the provider side of the market.