The multiplier effect
A) explains what causes an expansion.
B) has no impact on equilibrium expenditure.
C) reinforces the negative effects of any reduction in spending.
D) explains what causes a recession.
E) explains how the economy recovers from a recession.
C
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The infant industry argument is valid if the present value of the stream of national benefits is less than the present value of the stream of national costs.
Answer the following statement true (T) or false (F)
Government intervention in agricultural markets in the U.S. began in the
A) 1920s. B) 1930s. C) 1950s. D) 1970s.
The following are the respective numbers for the four-firm concentration ratio and Heyerdahl index in an industry. Which set of numbers would suggest that the industry was monopolistic ally competitive?
A. 25 and 207 B. 76 and 2662 C. 80 and 1800 D. 89 and 2582