Private donations of aid are:
A. not generally counted in aid statistics that are reported by various aid agencies.
B. larger than the entire budget for official foreign aid provided by the U.S.
C. a significant portion of aid, nearly half as much as the budget for official foreign aid provided by the U.S.
D. a dwindling portion of aid given to foreign countries.
Answer: B
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Open market sale of government securities by the Fed decreases the federal funds rate
Indicate whether the statement is true or false
The equilibrium level of real GDP is $1,000 . the target full-employment level of real GDP is $1,500, and the marginal propensity to consume is 0.75 . The target can be reached if government spending is:
a. increased by $100 billion. b. increased by $125 billion. c. increased by $500 billion. d. held constant.
Which of the following is the formula for the average product of labor?
A. F(L) - F(L - ?L) B. F(L)/L C. F(L)/?L D. [F(L) - F(L - ?L)]/?L