The ratio of the change in GDP to an initial change in aggregate expenditures (AE) is the:
A. spending multiplier.
B. permanent income rate.
C. marginal expenditure rate.
D. marginal propensity to consume.
Answer: A
You might also like to view...
In the U.S., charging monopoly-level prices
A) is evidence of a conspiracy. B) is illegal. C) is not necessarily illegal. D) constitutes a per se violation.
For every firm that faces a downward-sloping demand curve for its output,
a. marginal cost exceeds marginal revenue at all output levels b. marginal revenue equals the price of the last unit sold c. marginal revenue is less than the price of the last unit sold d. marginal revenue exceeds the price of the last unit sold e. marginal cost exceeds the price of the last unit sold
The taxes paid by citizens are directly related to the benefit of government goods and services received.
A. True B. False C. Uncertain
One reason the theory of purchasing power parity may not explain price differences between countries is:
A. nominal exchange rates are flexible. B. some products do not trade. C. inflation rates differ across countries. D. real exchange rates are almost impossible to calculate.