If autonomous investment increases by $200 billion and the marginal propensity to consume (MPC) is 0.5, then
A) real Gross Domestic Product (GDP) will rise by $100 billion.
B) real Gross Domestic Product (GDP) will rise by $200 billion.
C) real Gross Domestic Product (GDP) will rise by $400 billion.
D) real Gross Domestic Product (GDP) will decrease by $100 billion.
C
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Which of the following groups tends to have the highest unemployment rate in the United States?
a. African American teenagers b. Workers, age 25 or older, who are college graduates c. White women d. Workers, 25 years of age or older, who are high school dropouts e. White teenagers
The factor of production called "capital" refers to:
A. any input that's not a human being or dirt. B. any piece of raw material that is used to produce goods and services. C. the amount of money a firm has access in order to run its business. D. manufactured goods that are used to produce new goods.
Keynesian monetary theory:
a) is the same as the classical theory in all essential elements. b) states that changes in the money supply have no impact on GDP in either the short or long run. c) states that an increase in the money supply leads to lower interest rates, which stimulates investment and aggregate demand. d) states that an increase in the money supply will lower interest rates and thereby shift the long-run aggregate supply curve to the right.
Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the short run, we expect that the typical firm is likely to begin:
Select one: A. incurring an economic loss. B. experiencing neither an economic profit nor an economic loss. C. earning an economic profit. D. experiencing no change in its economic profit.