If the MPC is b, then the multiplier is
A) 1/(1 - b).
B) b/(1 - b).
C) 1/(1 + b).
D) b/(1 + b).
A
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The law of increasing additional costs is due to
A) government regulations. B) technological improvements. C) the fact that it is more difficult to use resources efficiently the more society produces. D) the fact that resources are not perfectly adaptable for alternative uses.
In Macroland, 500,000 of the 1 million people in the country are employed. Average labor productivity in Macroland is $20,000 per worker. Real GDP per person in Macroland totals:
A. $10,000. B. $1,000. C. $40,000. D. $15,000.
Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then his consumer surplus is
A. $0.90. B. $19. C. $90. D. $1.
If elected officials prefer policy actions that make benefits available quickly while deferring costs, they will be inclined to favor
A) an easier monetary policy to counter recession. B) increased appropriations to provide jobs for unemployed workers. C) a wage and price freeze to control inflation. D) all of the above. E) none of the above.