Firms report that their workers are working six hours of overtime per week. The government reports that the unemployment rate is 3.5%. In this situation, the multiplier is likely to be
A. large.
B. negative.
C. small.
D. infinitely large.
Answer: C
You might also like to view...
A country that must decrease production of one good in order to increase the production of another
A) must be using resources inefficiently. B) must be producing on its production possibilities frontier. C) must be producing beyond its production possibilities frontier. D) must have private ownership of property.
How are cap-and-trade schemes designed to reduce emissions?
What will be an ideal response?
Joel buys ten disks for his new personal computer, and he places a $60 value on those disks, even though he only paid $2 per disk. What is his consumer surplus?
a. $48 b. $30 c. $40 d. $20 e. $4 from each floppy disk
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.