If the desired fiscal stimulus is $20 billion and the desired AD increase is $50 billion, we can conclude that
A. There is an inflationary gap.
B. The MPC is 0.60.
C. The multiplier is 2.0.
D. The MPS is 0.60.
Answer: B
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Consider this quote from an article in the Wall Street Journal: "The stock of educated workers isn't increasing fast enough to keep up with rising demand
Employers are paying the typical four-year college graduate [without graduate school] 75% more than they pay high-school grads. Twenty-five years ago, they were paying 40% more. Employers insist on ever better-educated, skilled workers. " Source: David Wessel, "Lack of Well-Educated Workers Has Lots of Roots, No Quick Fix," Wall Street Journal, April 19, 2007, A) The demand for high-school educated workers shifted to the left faster than the supply of college educated workers shifted to the right. B) The supply of high-school educated workers shifted to the right faster than the demand for college educated workers shifted to the right. C) The demand for college educated workers shifted to the right faster than the supply of college educated workers shifted to the right. D) The demand for college educated workers shifted to the right while the supply of college educated workers shifted to the left.
Which of following is an example of fiat money?
a. US dollars b. Gold c. Diamonds d. Silver e. Fur
Buying a cup of coffee with a dollar bill represents the use of money as a:
a. unit of account. b. medium of exchange. c. store of value. d. All of the answers are correct.
If the economy is experiencing an economic boom, which point in the graph shown would likely represent this?
A. E1 B. E2 C. E3 D. E4