The size of the spending multiplier depends on the level of real GDP
a. True
b. False
Indicate whether the statement is true or false
False
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The 2007-2009 recession began with reductions in investment and consumption spending, precipitated by a financial crisis. This explanation for the recession is consistent with
A. the monetarist view of macroeconomic instability. B. the mainstream view of macroeconomic instability. C. the rational expectations view of macroeconomic instability. D. the real business cycle theory of macroeconomic instability.
When new firms enter a monopolistically competitive industry, each existing firm's
A) demand curve shifts rightward. B) demand curve shifts leftward. C) marginal cost curve shifts rightward. D) marginal cost curve shifts leftward.
The view that those whose preferences represent the middle position on an issue will tend to determine the outcome of an election is called: a. rent seeking
b. the median voter model. c. the special interest effect. d. the cyclical majority problem.
Refer to the following graph.
The maximum amount of good A can be consumed in this economy without trade is
A. Q units. B. F units. C. P units. D. G units.