If the marginal propensity to consume is 0.55, the simple spending multiplier is 3.65
a. True
b. False
Indicate whether the statement is true or false
False
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One reason a country does not specialize completely in production is that production of most goods involves increasing opportunity costs
Indicate whether the statement is true or false
A relatively steep LM curve implies that wide fluctuations in the goods sector cause
A) wide fluctuations in real output. B) wide fluctuations in the price level. C) wide fluctuations in the interest rate. D) crowding out of private investment.
The amount earned by the tertiary laborer is determined by labor productivity in the primary and secondary sectors of the U.S. economy
Indicate whether the statement is true or false
In the United States, the distribution of income after the income tax is ____ the distribution of income before the income tax
a. slightly less equal than b. about as equal as c. slightly more equal than d. a great deal more equal than