Approximately __________ of the impact of monetary policy on GDP after one year stems from the effective of changes in wealth on consumer spending
A) 10 percent
B) 25 percent
C) 50 percent
D) 75 percent
B
You might also like to view...
Refer to Figure 2-15. One segment of the circular flow diagram in the figure shows the flow of labor services from market K to economic agents J. What is market K and who are economic agents J?
A) K = product markets; J = firms B) K = factor markets; J = firms C) K = product markets; J = households D) K = factor markets; J = households
Suppose that at an output of 1,000 units, a monopolist has marginal cost of $40, marginal revenue of $30, average variable cost of $30, and average total cost of $50 . In order to maximize profit or minimize loss in the short run, the firm should
a. shut down b. continue to produce 1,000 units c. produce fewer than 1,000 units but still operate d. produce more than 1,000 units e. increase its plant size to gain economies of scale
After hiring a new employee, a manager finds that the total output has increased. When the manager hires another employee however, he realizes that although the total production has increased, the increment is less than the previous case. This is the result of:
a. diseconomies of scale. b. a general economic downturn. c. diminishing marginal returns. d. the lack of skills of the two new employees. e. constant returns to scale.
In 2012, the combined expenditures of federal, state, and local governments in the United States were approximately 38 percent of gross domestic product (GDP). Approximately what percentage of GDP were government expenditures in 1930?
a. 9 percent b. 19 percent c. 29 percent d. 39 percent