When real income ________, the demand curve for money shifts to the ________ and the interest rate ________, everything else held constant
A) falls; right; rises
B) rises; right; rises
C) falls; left; rises
D) rises; left; rises
B
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Table 8-1 Item Amount (billions) Personal Consumption Expenditures 600 Depreciation 50 Wages 800 Indirect Business Taxes 10 Rental Income 25 Gross Private Domestic Investment 150 Corporate Profits 75 Net Exports 5 Government Purchases of Goods and Services 200 Government Transfer Payments 50 According to the data in Table 8-1, the value of GDP is
A. 800 B. 805 C. 955 D. 1,055
The future of private sector labor unions is
A. bright because of the increased availability of undocumented workers from other countries. B. bright because of the spectacular success of the PATCO strike. C. bleak because of the growing economic importance of the service and retailing industries. D. bleak because of the recent increases in the minimum wage earned by non-union workers.
If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment
A) will increase. B) will remain constant. C) will decrease. D) may increase or decrease.
If the expenditure multiplier is 6.5, the tax multiplier is
a. 7.5 b. 5.5 c. -5.5 d. -6.5 e. -7.5