If the increase in government spending is $200 and the multiplier is 2.5, then the change in real gross domestic product will be _____
a. $200
b. $300
c. $500
d. $700
c
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How is it that economists can claim that perfectly competitive markets give people what they want?
What will be an ideal response?
Refer to the payoff matrix below. Which of the following is true for Happy Campers?
A) They have one dominated strategy.
B) They have three dominated strategies.
C) They have two dominated strategies.
D) They have zero dominated strategies.
Which of the following would be considered part of the underground economy?
a. tips reported to the IRS by a waitress b. a barber giving a person a haircut in exchange for a meal c. income earned through selling shares of stock d. the portion of a professional athlete's salary that is economic rent e. donations received by a local church in their collection plate on Sunday morning
Perfect competition is defined as market structure in which:
a. there are many small sellers. b. the product is homogeneous. c. it is very easy for firms to enter or exit the market. d. all of these.