Refer to the information provided in Figure 23.11 below to answer the question(s) that follow.
Figure 23.11Refer to Figure 23.11. If MPC increases to 0.8, equilibrium aggregate output
A. increases to $250 million.
B. increases to $400 million.
C. remains at $200 million.
D. cannot be determined from the given information.
Answer: A
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Which of the following is true about a risk-averse individual facing a full menu of actuarily fair insurance contracts to choose from?
A. The individual will "over-insure" if consumption is more meaningful in the good state. B. The individual will "over-insure" if consumption is more meaningful in the bad state. C. The individual will fully insure when tastes are state-independent. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above. H. None of the above.
The best measure of the standard of living is
A) real GDP per capita. B) real GDP. C) nominal GDP per capita. D) nominal GDP.
Equilibrium is defined as a situation in which
A) neither buyers nor sellers want to change their behavior. B) no government regulations exist. C) demand curves are perfectly horizontal. D) suppliers will supply any amount that buyers wish to buy.
Which of the following coordinates and plans foreign aid programs and expenditures in the United Sates?
a. The Federal Reserve Board b. The Federal Open Market Committee c. The Agency for International Development d. The Bureau of Economic Analysis e. The U.S.Department of the Treasury