Which of the following is likely to happen if the government increases its expenditure?
A) Price level will fall. B) Investment will decrease.
C) Unemployment will increase. D) Consumption will increase.
D
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Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. Which of the following gives the function for the marginal social cost?
A. MSC = 1,200 - 4Q B. MSC = 800 + 4Q C. MSC = 1,200 + 4Q D. MSC = 800 - 4Q
A problem associated with import substitution as an industrial policy is:
A. it removes the incentive for industries to be efficient. B. industries are often chosen for political, not economic, reasons. C. it often stays in place long after it was expected to lapse. D. All of these are problems associated with import substitution policy.
The labor force of Rhodia is 50 million, of which 25 million are employed. This implies that the unemployment rate in this country is _____
a. 50% b. 10% c. 20% d. 40%
As long as the additional revenue from employing another worker exceeds the additional cost, the firm should not hire that worker
Indicate whether the statement is true or false