The government purchases multiplier equals the change in ________ divided by the change in ________
A) consumption spending; government purchases B) government purchases; consumption spending
C) government purchases; equilibrium real GDP D) equilibrium real GDP; government purchases
D
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A takeover implies that
a. the common shareholders buy out the bondholders b. the government takes over the corporation c. someone or a group is able to purchase all of the outstanding common stock in a corporation d. the board of directors takes control of the corporation e. a proprietorship sells out to a partnership
Real economic growth during the first two years of President George W. Bush's second term was
A. negative because of the 2001 recession. B. lower than real economic growth during the first two years of President Bill Clinton's second term. C. approximately 6.4% per year. D. approximately 8.7% per year.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Which of the following is a TRUE statement?
A. To get more money, one must earn interest on money. B. To demand money is to demand a higher income. C. To use money, one must hold money. D. To demand money is to demand wealth.