An increase in the aggregate expenditures schedule ________.
A. decreases aggregate demand by the amount of the increase in aggregate expenditures
B. increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier
C. decreases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier
D. increases aggregate demand by the amount of the increase in aggregate expenditures only
Answer: B
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Official unemployment rates may underestimate the true rate of unemployment because the official rate
A) fails to include discouraged workers. B) does not include individuals receiving any type of unemployment compensation. C) may include some individuals who are not actually in the labor force. D) includes those workers who only work part time.
In general does international diversification benefit investors?
A) yes, because it allows them to diversify their risk across many countries B) no, because it creates the additional problem of country risk C) yes, because it enables much greater profits through arbitrage opportunities D) no, because it subjects them to legal regulation in additional markets
If there are large disparities in wage levels between countries, then
A) trade is likely to be harmful to both countries. B) trade is likely to be harmful to the country with the high wages. C) trade is likely to be harmful to the country with the low wages. D) trade is likely to be harmful to neither country. E) trade is likely to have no effect on either country.
Refer to Scenario 10.1. The price of her product will be ________
A) 4 B) 22 C) 32 D) 42 E) 72