Good Y is a complement to good X if an increase in the price of good Y leads to
A. an increase in the demand for good X.
B. a decrease in the supply for good X.
C. a decrease in the demand for good X.
D. an increase in the supply for good X.
Answer: C
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What happened to real GDP and the inflation rate during the recession of 2007-2009?
What will be an ideal response?
If a firm is a monopsonistic hirer of labor,
a. its marginal expense for labor is greater than the market wage. b. its marginal expense for labor is equal to the market wage. c. its marginal expense for labor is less than the market wage. d. it is a price taker in the labor market.
If the MPC is 0.70, then the income multiplier is equal to
a. 0.70 b. 0.30 c. 0.14 d. 3.33 e. 5
Exhibit 9-6 Keynesian aggregate expenditure model when the MPC is 2/3
?
In Exhibit 9-6, the spending multiplier for this economy is equal to:
A. 1 2/3. B. 2 1/2. C. 3. D. 5.