In the above table, C is consumption expenditure, I is investment, G is government expenditure, and X - M is net exports. All entries are in dollars. The slope of the aggregate expenditure function is
A) -0.10.
B) 0.10.
C) 0.60.
D) 0.70.
Ans: C) 0.60.
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Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?
A) 49 percent B) 67 percent C) 64 percent D) 51 percent E) 76 percent
If the Fed raises the reserve requirement on deposits from 15 percent to 20 percent, what would happen to the money supply?
a. It would decrease. b. It would increase. c. It would remain unchanged. d. It depends on the value of interest rates.
Use the following graph to answer the question below.
If the price decreases from P3 to P2, then the total revenue will lose areas
A. B + E, but it will gain areas H + I. B. E + F + G but it will gain areas H + I + J. C. A + B + C + D, but it will gain areas E + F + G. D. H + I, but it will gain areas A + B + C.
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Ricardo to produce one shirt?
A. 2 computers B. ¼ computer C. 4 computers D. ½ computer