Refer to the graph shown. The economy begins at a level of output of $50 billion and experiences a one year recession in which output declines by 3 percent. What is output in year 1?
A. $51.5 billion
B. $48.5 million
C. $15 billion
D. $1.50 billion
Answer: B
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People who were working in the formal sector and now work in the underground economy but report being unemployed will cause the unemployment rate to ________, and this action tends to ________ the unemployment rate
A) increase; overstate B) increase; understate C) decrease; overstate D) decrease; understate
Along a linear (straight-line) downward-sloping demand curve, demand is unit elastic at
A) the highest price. B) the lowest price. C) the midpoint. D) all points on the linear demand curve. E) None of the above because linear demand curves are never unit elastic.
In the figure above, the poorest 40 percent of all households receive what share of income?
A) 10 percent B) 20 percent C) 40 percent D) 60 percent
What are the four categories of aggregate expenditure?
What will be an ideal response?