In the short-run Keynesian model, to close a recessionary gap of $1 billion dollars government purchases must be:
A. increased by more than $1 billion.
B. increased by $1 billion.
C. increased by less than $1 billion.
D. decreased by $1 billion.
Answer: C
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The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is maximized when it produces
A) 0 units of output. B) 5 units of output. C) 15 units of output. D) 20 units of output.
Refer to above figure, which represents a duopoly industry. What would be the likely total industry payoff or profit?
A) $8 million B) $9 million C) $10 million D) $14 million E) zero
The survey the Bureau of Labor Statistics uses to collect unemployment data is called the:
A. current population survey. B. census population survey. C. census employment survey. D. current employment survey.
In pure competition, price is determined where the industry:
A. average total cost equals total variable costs. B. total cost is greater than total revenue. C. demand and supply curves intersect. D. demand intersects the firm's marginal cost curve.