If the full-employment GDP for the economy is at L, then we can say with certainty that the:
A. actual budget will have a deficit.
B. cyclically adjusted budget will have a deficit.
C. actual budget will have a surplus.
D. cyclically adjusted budget will have a surplus.
D. cyclically adjusted budget will have a surplus.
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Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the additional amount spent on non-necessities should be:
A. $10,000. B. $40,000. C. $32,000. D. $35,000.
One essential factor for economic growth is:
A. Increasing population growth B. Expanding the role of government C. Using existing resources more efficiently D. Expanding tax-credits for business investment
A fall in the value of the pound is likely to decrease spending on imports if:
Which of the following topics would be covered in microeconomics? a. The effects of an increase in the supply of lumber on the homebuilding industry. b. The unemployment rate
c. The effects of interest rates on the overall economy. d. The inflation rate.