Do policy makers know the exact value of the fiscal multiplier?
a. No, economists have almost no idea of the value of fiscal multipliers.
b. No, they are not known with complete accuracy.
c. Yes, economists know the precise value of the multiplier.
d. Yes, although there is a very small range of uncertainty in the value.
b
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If the production possibilities frontier for two goods is shown as a straight line, this implies that
A. there is no trade-off between the two goods. B. the principle of increasing costs is present. C. the slope of the production possibilities frontier is increasing. D. there are no specialized resources used in the production of these goods.
Which of the following variables do you need to know to calculate marginal cost?
i. change in total cost ii. marginal product of labor iii. change in quantity of labor used iv. change in output A) i and ii B) i and iv C) ii and iv D) i, iii, and iv E) Only ii
If the price level P equals 1.50, GDP is $6,000 billion, and the stock of money is $900 billion, the velocity of circulation of money is about
A. 3. B. 9. C. 5. D. 10.
Assume the market price for tangerines is $18.00 per bushel. At the market price, tangerine growers are willing to supply a quantity of 12,000 bushels per week. The quantity supplied drops to zero when the price falls to $5.00 per bushel. Construct a
graph showing this data, calculate the total producer surplus in the market for tangerines, and show the total producer surplus on the graph. Your supply curve should be a straight line. What will be an ideal response?