A $0.2 trillion increase in government purchases increases the quantity demanded by $1.0 trillion, price level remaining constant. This additional spending reflects the _____ effect
a. recessionary
b. expansionary
c. simple spending multiplier
d. income
e. substitution
c
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For most firms in the economy, the largest part of factor costs is the cost of
A. labor. B. capital. C. property and machinery. D. land and natural resources.
The short run is best defined as:
A. one year or less. B. a period of time sufficiently short that all factors of production are variable. C. a period of time sufficiently short that at least one factor of production is fixed. D. the period of time between quarterly accounting reports.
ADRs that are created at the request of a foreign firm wanting its shares traded in the United States are ________.
A) facilitated B) unfacilitated C) sponsored D) unsponsored
The macroeconomic conditions during the mid-1990s confounded many economists because of the simultaneous occurrence of
A. low unemployment and decreasing inflation rates. B. low unemployment and increasing budget deficits. C. low unemployment and increasing interest rates. D. high unemployment and increasing inflation rates.