If the economy is already producing at its potential, _____
a. the spending multiplier equals 1/(1 - MPC) in the long run
b. the spending multiplier is less than 1/(1 - MPC) in the long run
c. the spending multiplier is more than 1/(1 - MPC) in the long run
d. the spending multiplier equals zero in the long run
e. the aggregate demand curve is horizontal
d
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The objective of rent controls is to
A) ensure an adequate supply of rental housing for the poor. B) keep rents below levels that would be observed in a freely competitive market. C) encourage the construction of new rental units. D) raise revenue for the local government.
If marginal cost is increasing then: a. marginal product must be increasing
b. average variable cost must be increasing. c. average total cost must be increasing. d. none of the above must necessarily be true.
Which of the following cases violates the property of transitivity?
A. A > B, B > C, A > C. B. A ~ B, B ~ C, A ~ C. C. A > B, B > C, C > A. D. None of the statements violates the transitivity property.
Which one of these countries has not adopted the euro?
A. Germany B. France C. Italy D. England