The size of the multiplier associated with an initial increase in spending will be:
A. the same whether or not inflation occurs.
B. diminished if inflation occurs.
C. zero if any increase in the price level occurs.
D. enhanced if inflation occurs.
B. diminished if inflation occurs.
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The consumption possibilities curve shows the combinations of goods that can be
A) consumed by a nation after trading begins. B) produced by a nation after trade begins. C) produced by a nation before trading begins. D) consumed by a nation before trade begins.
Deadweight loss is the decrease in ________ from producing an inefficient amount of a product
A) only consumer surplus B) only producer surplus C) consumer surplus and producer surplus D) profit
When 5 units of labor are employed, total product is 9 units; when 6 units of labor are employed, total product is 11 units of output. If the price of output is $5 per unit, what is the marginal revenue product of the 6th unit of labor?
A) $10 B) $5 C) $15 D) $55
A dollar figure from 1908 is converted into 2008 dollars by dividing the 2008 price level by the 1908 price level, then multiplying by the 1908 dollar figure
a. True b. False Indicate whether the statement is true or false