If the multiplier effect did not exist, the aggregate demand curve would:
A. be horizontal.
B. be flatter.
C. be steeper.
D. not exist.
Answer: C
You might also like to view...
In computing GDP, it is essential to
A) avoid double counting. B) include government transfer payments. C) include government tax revenues. D) count all intermediate products directly as they are produced.
In the Solow model, if f(k) = 2k0.5, s = 0.25, n = 0.1, and d = 0.4, what is the value of k at equilibrium?
A) 1 B) 2 C) 3 D) 4
In the efficiency wage model, a decrease in productivity would
A. decrease output but have no effect on the real wage. B. have no effect on either output or the real wage. C. increase the real wage but have no effect on output. D. decrease output but increase the real wage.
If an athlete were to pick the sport where being the best at a position would easily allow you to move to a city destined to win a championship, it would be
A. European soccer. B. NBA basketball. C. NFL football. D. Major League Baseball.