In the real world, the actual multiplier is ____ the simplified multiplier.
A. much larger than
B. slightly larger than
C. equal to
D. much smaller than
Answer: D
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In constructing models, economists
A) include all independent variables. B) include all available information. C) attempt to duplicate the real world. D) make simplifying assumptions.
The postwar years:
a. ushered in what has been described as an unthinking materialist culture. b. ushered in what has been described as a consumer-oriented society that represented the fulfillment of the American dream. c. featured an unusual deviation from the long-term trend toward smaller families. d. All of the above are correct. e. Only a and b are correct.
According to Keynes, a pessimistic outlook causes consumers and businesspersons to ____, and a recession could occur.
A. increase planned investment B. decrease planned spending C. increase exports D. decrease imports E. decrease saving
When the economy enters a recessionary phase of the business cycle, unemployment tends to
A) decrease. B) increase. C) be unchanged. D) change in the same direction as the rate of inflation.