Refer to the scenario above. What is the present value of the gift voucher for Jim?
A) 12 utils
B) 22.5 utils
C) 90 utils
D) 180 utils
B
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
If households save $0.20 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be
A) 1.25. B) 2. C) 5. D) 8.
In the United States, the wage rates for high school graduates are growing faster than the wage rates for college graduates
a. True b. False Indicate whether the statement is true or false
The period of growth in real GDP between the trough of the business cycle and the next peak is called the:
A. recessionary phase. B. expansionary phase. C. contractionary phase. D. cyclical phase.