In an economy with no income taxes or imports, if the multiplier is 5, what does the MPC equal?
A) 0.9 B) 0.2 C) 0.4 D) 0.8 E) 0.5
D
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If real GDP grows at 3 percent a year, the quantity of money grows at 5 percent a year, and the velocity of circulation is constant, then the price level must be
A) increasing at 8 percent a year. B) decreasing at 2 percent a year. C) increasing at 15 percent a year. D) increasing at 2 percent a year. E) decreasing at 8 percent a year.
If there is an increase in expected future income, then
A) the aggregate demand curve shifts rightward. B) the aggregate demand curve shifts leftward. C) there is an upward movement along the aggregate demand curve. D) there is a downward movement along the aggregate demand curve. E) the aggregate demand curve becomes steeper.
A market system solves the
a. "what" and "how" decisions but not the "to whom." b. "what" and "to whom" decisions but not the "how." c. "how" and "to whom" decisions but not the "what." d. "what," "how," and "to whom" decisions.
Which of the following is the primary source of rapid growth in the real earnings of workers?
a. strong unions b. government regulation of labor markets c. rapid growth in worker productivity d. increases in the minimum wage