The expenditure multiplier measures the change in
A) autonomous spending that results from a change in equilibrium expenditure.
B) equilibrium expenditure from a change in induced consumption.
C) consumption expenditure for a given change in disposable income.
D) equilibrium expenditure that results from a change in autonomous expenditure.
E) the price level that results from a change in real GDP.
D
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If the economy has a natural unemployment rate of 4 percent and potential GDP of $5 trillion, what will be real GDP according to Okun's Law if the unemployment rate rises to 5 percent?
What will be an ideal response?
In a competitive separating equilibrium, low cost consumers of insurance will not fully insure because insurance rates offered to them are not actuarily fair.
Answer the following statement true (T) or false (F)
A textbook publisher is in monopolistic competition. The firm can sell no books at $100 a book, but for each $10 cut in price, the quantity of books it can sell increases by 20 books a day
The firm's average variable cost and marginal cost is a constant $20 per book. What is the publisher's profit-maximizing level of output? A) 60 books per day B) 80 books per day C) 100 books per day D) 120 books per day
Suppose this customer is known to throw a fit and scare away other customers if charged high prices. If the shopkeeper moves first, he would ask for
a. A high price b. A low price c. A pony d. All of the above