If the economy is already at its potential output, then the spending multiplier is:
a. zero in the long run
b. infinite in the long run.
c. equal to 1 in the long run.
d. zero in the short run.
e. equal to 1 in the short run.
a
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Explain how each of the following events would affect the aggregate demand curve
a. Lower interest rates b. A decrease in net exports c. A decrease in the price level d. Slower income growth in other countries e. A decrease in imports What will be an ideal response?
Explain why the real interest rate is the opportunity cost of loanable funds
What will be an ideal response?
Find the size of the labor force from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000
a. 1,425 b. 1,450 c. 1,500 d. 1,525 e. 2,000
Which of the following conditions is characteristic of a monopolistically competitive firm in short-run equilibrium?
a. P > AR b. MR > MC c. P > MC d. All of the above are correct.