The multiplier for changes in government spending is calculated as
a. 1/(1+MPC).
b. (1 - MPC)/MPC.
c. 1/MPC.
d. 1/(1 - MPC).
d
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In the above figure, suppose the demand for dollars permanently decreases to D2. To maintain the target, the Fed
A) can buy dollars. B) can sell dollars. C) must decrease the nation's net exports. D) cannot permanently maintain the exchange rate target of 150 yen per dollar.
According to proponents of behavioral economics, because every possible choice cannot be considered, an individual will tend to fall back on methods of making decisions that are simpler than trying to sort through every single possibility, known as
A) rules of thumb. B) rational options. C) irrational choices. D) normative decisions.
Your textbooks gives several examples of quasi experiments that were conducted. The following is not an example of a quasi experiment:
A) labor market effects of immigration. B) effects on civilian earnings of military service. C) the effect of cardiac catheterization. D) the effect of unemployment on the inflation rate.
Graphically, a firm's profit per unit of output can be found by:
a. the triangle formed under the demand curve. b. the rectangle formed under the demand curve at a given price and quantity combination. c. the rectangle formed under the average-total-cost curve at a given ATC and quantity combination. d. the distance between the demand and average-total-cost curves at any level of output. e. the distance between the horizontal axis and the average-total-cost curves at any level of output.