How can an economy's consumption expenditures be larger than its national income?
This can occur with dissaving, that is, by borrowing or by spending out of the savings that they
accumulated in the past.
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Assume a closed economy, that taxes are fixed, and the marginal propensity to consume is equal to 0.8. What is the government spending multiplier?
A) 10 B) 5 C) 4 D) 3
Use the above table. If the marginal revenue product is $10, how many workers will the profit maximizing monopsonist hire?
A) 1 B) 2 C) 3 D) 4
During the Great Depression, the United States economy operated ______________ the production possibilities frontier.
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Table 6.4 below to answer the question(s) that follow. Table 6.4Number ofDonuts per DayTotal UtilityMarginal Utility180?2150?3200?4230?5?10Number ofBurritos per DayTotal UtilityMarginal Utility160?2108?3144?4168?5?12Refer to Table 6.4. The marginal utility of the second donut per day is
A. 20. B. 30. C. 70. D. 110.