Refer to the table above. If government expenditure increases by $2,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will increase to $404,000 B) gross domestic product will fall by $ 2,000
C) gross domestic product will fall to $400,000 D) gross domestic product will increase by $2,000
D
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Assume there are 75 transactions a year in an economy with a money supply of $300 . If the average value of each transaction is $20, then the velocity of money is
a. 1/2. b. 1 c. .2 d. 20.
If the total cost of producing one unit of the output is $100 and the marginal cost of that unit is $20, the average fixed cost of producing two units of output is ________
Fill in the blank(s) with correct word
The reserve ratio is 10 percent. Depositors regularly keep 10 percent of their deposits as cash. If the Fed buys $1 million of U.S. government securities, excess reserves
A) increase by $800,000. B) increase by $810,000. C) increase by $900,000. D) increase by $1 million.
In the long run, the economic profits of a monopolistically competitive firm
A. will be the average short-run profits earned in the last five years. B. will be the same as in the short run. C. equal zero. D. will tend to be larger than in the short run.