Because of the multiplier, a one-time change in expenditure will.
a) have little secondary effect on real GDP
b) expand real GDP by an infinite amount
c) generate more additional real GDP than the initial change in expenditure
d) decrease saving and investment activity and thereby decrease future real GDP
Ans: d) decrease saving and investment activity and thereby decrease future real GDP
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The chairman of the Board of Governors of the Fed is designated by ____________________ to serve a _______ year term as chairman
A) the President; four B) Congress; fourteen C) the President; twelve D) Congress; four
Collusion is:
A. easy to maintain since firms always have an incentive to renege. B. difficult to maintain since firms rarely agree on the terms. C. easy to maintain since firms face similar cost curves. D. difficult to maintain since firms always have an incentive to renege.
Graphically show a firm earning a profit; shade the appropriate profit rectangle. Explain how the profit formula represented by the rectangle is analogous to TR ? TC.
What will be an ideal response?
If the quality of a good improves while its price remains the same, then the value of a dollar
a. rises and the cost of living increases. b. rises and the cost of living decreases. c. falls and the cost of living increases. d. falls and the cost of living decreases.