The formula for the government spending multiplier is
A) (1 + b) / (1 - b). B) -b / (1 - b). C) 1 / (1 - b). D) b / (1 - b).
C
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Use the following graph to answer the next question.
Assume the economy is initially located on AD0 and AS0. An increase in personal income taxes would result in price ________ and real domestic output ________.
A. E; B B. F; C C. F; A D. G; B
In the relevant price range a demand curve for a Giffen good would be
A) upward sloping. B) downward sloping. C) horizontal. D) vertical.
US law was recently changed so that some airplane manufacturers are immune from liability from accidents involving their decades old aircraft. As a result
a. accident rates fell due to less adverse selection b. accident rates fell due to less moral hazard c. accident rates rose due to less adverse selection d. accident rates rose due to less moral hazard
An oligopoly showing no economic profit or loss has
a. an AR curve tangent to the lowest point of its ATC curve. b. an AR curve tangent to its ATC curve to the left of the lowest point. c. an MR curve above its AR curve. d. an AR curve that crosses its ATC curve.