Assume an economy with an upward-sloping aggregate supply curve and an MPC of 0.80. An increase in investment spending of $50 billion will most likely increase total income by
A. $200 billion.
B. $40 billion.
C. more than $200 billion.
D. more than $50 billion but less than $250 billion.
Answer: D
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Relative to the United States, the European Union antitrust law focuses more on all of the following except which one?
A) ethics B) furthering the social interest C) the leveling of the competitive playing field D) fairness
When there is no Equilibrium (or no Nash Equilibrium), we expect that:
a. the firms end up in the cooperative strategy. b. a firm will follow a randomized strategy. c. a firm will not care what it does. d. a firm will very likely have a dominant strategy.
Why does a larger government budget deficit increase the magnitude of the crowding-out effect?
Demand pull inflation occurs when a nation's:
a. Aggregate demand rises, causing rising prices and rising unemployment. b. Aggregate demand rises, causing rising prices and falling unemployment. c. Aggregate demand rises, which leads to a decrease in aggregate supply and an increase in prices. d. Aggregate supply falls, causing rising prices and rising unemployment.