Given a national income of $800 billion, an MPC of 0.8, and autonomous consumption of $60 billion, what is the level of consumption spending?
a. $640 billion
b. $700 billion
c. $760 billion
d. $800 billion
e. $860 billion
B
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The natural rate of unemployment consists of frictional unemployment plus structural unemployment
Indicate whether the statement is true or false
Which of the following is not a typical goal of bureaucrats?
a. increasing the size of their bureaus b. gaining prestige c. increasing the size of their staffs d. increasing their bureaus' budgets e. achieving greater efficiency
An oligopoly may result from:
a. low or no barriers to entry. b. Standardization of a product. c. price-taking conditions for both buyers and sellers. d. increasing returns to scale
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.