If net exports increase by $10 billion and the MPC = 0.6, the resulting increase in the consumption component of AD is:
a. $25 billion.
b. $15 billion.
c. $6 billion
d. $4 billion.
b
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A limit on the amount of strawberries that can be imported into the United States is an example of
A) the rationing function of prices protecting domestic strawberry farmers. B) a price floor set by the government. C) a price ceiling set by government. D) an import quota.
What percentage of the average U.S. firm's costs are accounted for by wages and salaries?
A. 40. B. 60. C. 75. D. 85.
Which aggregate supply curve has a positive slope?
A) long run only B) short run only C) both long run and short run D) neither long run nor short run
Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. Macroland is currently operating at Point A. The best explanation for this is that
A. the economy has very few resources. B. the economy's resources are being used inefficiently. C. the economy operates as an efficient market. D. the economy has very poor technology.