The size of the multiplier depends on
A) the level of autonomous investment.
B) the marginal propensity to consume.
C) the level of net exports.
D) the level of autonomous consumption.
B
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Which of the following would be included in the calculation of Gross Domestic Product (GDP)?
A) the value of spending on new machinery and equipment B) the value of the sale of 1,000 shares of IBM stock C) the value of transfer payments D) the value of the sale of a used guitar
Marginal revenue product can be calculated using the formula marginal product × output price
A) only if the both marginal product of labor and the output price are constant. B) only if the firm has market power in the labor market C) only if output price is constant. D) only if the marginal product of labor is constant.
Suppose that the nation wide average cost of air pollution generated by a car is $1,000. Would a tax of $1,000 on every car induce people to take external costs into consideration and bring about the optimal price and output for autos? Explain
What will be an ideal response?
Refer to the graph shown. Monetary policy that shifts the AD curve from AD0 to AD2 is
A. contractionary. B. neither expansionary nor contractionary since it does not affect output. C. expansionary. D. neither expansionary nor contractionary since it does not affect inflation.