If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP, then
A) the MPC is 0.5. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 0.9.
C
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Refer to Table 2-5. Assume Nadia's Neckware only produces ascots and bowties. A combination of 16 ascots and 6 bowties would appear
A) along Nadia's production possibilities frontier. B) inside Nadia's production possibilities frontier. C) outside Nadia's production possibilities frontier. D) at the horizontal intercept of Nadia's production possibilities frontier.
If inflation in the United States is lower than inflation in other countries, what will be the effect on net exports for the United States?
A) Net exports will rise as U.S. exports increase. B) Net exports will decrease as U.S. imports decrease. C) Net exports will decrease as U.S. exports decrease. D) Net exports will rise as U.S. imports increase.
The current account includes records of a country's
A) net transfers. B) net investment income. C) net exports. D) All of the above are included in an economy's current account.
The shape of the marginal cost curve tells a producer something about the marginal product of her workers
a. True b. False Indicate whether the statement is true or false