If the MPC equals 0.80 then:
a. the MPS equals 1.20.
b. the multiplier equals 0.20.
c. the multiplier equals 1 divided by 0.80.
d. the multiplier equals 5.
e. none of these.
d
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A wage rate that is adjusted for changes in the price level is known as the
A) nominal wage. B) minimum wage. C) functional wage. D) real wage.
The government of Techland is planning a cut in income tax rates. What is the possible consequence of such a change in policy on Techland's economy if it is implemented?
What will be an ideal response?
Can nominal GDP increase even when real GDP decreases?
A) No, it is not possible. B) Yes, but only if the price level decreases. C) Yes, but only if the price level increases. D) Yes, but only if the price level remains unchanged.
When the average total cost is $16 and the total cost is $800, then the number of units the firm is producing is
A) impossible to determine with the information given. B) 12,800. C) 784. D) 50.