As the unemployment rate increases,
A) potential GDP decreases.
B) real GDP decreases.
C) both real GDP and potential GDP decrease.
D) potential GDP increases.
E) full employment GDP decreases.
B
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Where the IS and LM curves intersect:
a. actual expenditure is equal to planned expenditure. b. output equals aggregate demand. c. savings plus taxes equals investment plus government spending. d. all of the above.
If the marginal propensity to consume in a country is 0.5, then the value of the tax multiplier is: a. ?1
b. ?0.5. c. ?2. d. ?1.5.
If realized capital gains are counted as household savings, then the saving rate in the US over the past 2 decades has
a) fallen sharply from 10% to nearly zero b) hovered near zero and occasionally been negative c) remained roughly steady at 10% d) increased sharply e) varied dramatically as the stock market has fluctuated
In a two-sided market, an intermediary firm that links groups of producers and consumers is called
A) an operator. B) an oligopoly. C) a platform. D) an end user.