(Advanced analysis) Assume the consumption schedule for a private closed economy is C = 40 + .75Y, where C is consumption and Y is gross domestic product. The multiplier for this economy is:
A. 3.
B. 4.
C. 5.
D. 10.
B. 4.
You might also like to view...
Which of the following has contributed to China's economic growth since 1980?
a. the rapid growth of foreign aid from European countries b. nationalization of many private industries c. increased restrictions on international trade d. increased privatization of the agricultural and small-business sectors
Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential
a. True b. False Indicate whether the statement is true or false
Accounting profits are calculated as:
A. total revenue minus implicit costs. B. total revenue minus explicit costs. C. total revenue minus all opportunity costs, explicit and implicit. D. None of these is true.
Refer to the graph shown which shows total product. At point B:
A. marginal product is at its minimum. B. marginal product is zero. C. marginal product is at its maximum. D. average product is at its maximum.