If MPC = 0.9, equilibrium income is $1,000 . and full-employment income is $2,000 . then how much government spending is needed to bring about full employment?
a. +1,000
b. –100
c. +900
d. +100
e. –0.9
D
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The basic reason why farm prices have declined has been that _________________________.
Fill in the blank(s) with the appropriate word(s).
A perfectly inelastic demand means:
A. demand will drop to zero if the price increases by any amount. B. consumers will change the quantity they purchase when price changes. C. consumers will not change the quantity they purchase when price changes. D. the demand curve is perfectly horizontal.
Suppose that a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, domestic suppliers will supply ________ of that good after it opens itself to international trade.
A. same amount B. less C. more D. none
Specialty chocolate bars with a high cocoa content have been drawing a lot of attention in gourmet circles in 2008 but the price of cocoa beans has increased more than 44 percent in this time period
In response to the increase in the price of cocoa beans, Rogue Chocolatier has increased the price of their gourmet chocolate bars by 20 percent. Rogue observes the quantity of their bars sold decreased by 15 percent. Based on this news clip, what does the price elasticity of demand for gourmet chocolate bars equal? A) 0.75 B) 1.25 C) 1 D) 0.66