If MPC = 0.8, a $200 billion increase in government purchases would have what size effect on the "first round" of induced added consumption?
a. $80 billion
b. $160 billion
c. $200 billion
d. $800 billion
b
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Factories and machines are examples of:
A. capital goods. B. consumption goods. C. non-market goods. D. value-added goods.
______________ is the time that an individual cannot control totally by himself or herself
a. Discretionary time b. Real time c. Psychic time d. Nondiscretionary time
A substitute is a good or service:
a. that can be used in place of another good or service. b. used with another good or service. c. that cannot be replaced with another good or service. d. that can have no demand for itself.
In the Keynesian cross diagram, if the aggregate expenditure line intersects the 45-degree line at potential GDP, then the economy is in recession
a. True b. False Indicate whether the statement is true or false