In the short-run Keynesian model, to close an expansionary gap of $10 billion dollars government purchases must be:
A. decreased by less than $10 billion.
B. decreased by $10 billion.
C. increased by $10 billion.
D. increased by more than $10 billion.
Answer: A
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In some remote communities, there was only one employer in the local labor market several years ago, but the number of firms that hired workers in the market increased over time
What is the expected change in the local labor market as the number of employers increased (ceteris paribus)? A) Wages and employment increase B) Wages remain the same but employment increases C) Wages increase but employment remains the same D) Wages and employment decline
A monopolist’s profit per unit is shown by the difference between price and marginal cost per unit.
Answer the following statement true (T) or false (F)
A market transaction causes an externality if someone
a. directly involved in the transaction receives uncompensated benefits or costs from it. b. not directly involved in the transaction receives uncompensated benefits or costs from it. c. directly involved in the transaction seeks legal assistance to ensure that the transaction is carried out. d. not directly involved in the transaction interferes in it by imposing regulations or product standards.
The labor-supply curve is affected by the trade-off between labor and leisure
a. True b. False Indicate whether the statement is true or false