Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.80 . A decrease in government spending of $1 billion would result in a decrease in GDP of:
a. $0.
b. $0.8 billion.
c. $1.0 billion.
d. $5.0 billion.
e. $8.0 billion.
d
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Suppose the local university charges $85 per credit hour. If tuition increases from $85 to $93 per credit hour, using the midpoint method, what is the percentage change in price?
A) 8.99 percent B) 8.00 percent C) 9.41 percent D) 8.62 percent E) 9.12 percent
If aggregate demand is $2,000 billion and aggregate supply is $2,300 billion, the price level will rise.
Answer the following statement true (T) or false (F)
International regulation occurs at two levels, one in which a specific government regulates the activities of individual firms operating within the country, and another in which several nations are involved
a. True b. False Indicate whether the statement is true or false
The minimum efficient scale is the level of output where the short-run average-total-cost curve reaches its minimum point
a. True b. False Indicate whether the statement is true or false