Refer to the given table. The multiplier in this economy is:
A. 2.
B. 4.
C. 5.
D. 10.
C. 5.
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A crisis in the Middle East drastically raises the price of petroleum. If the aggregate demand curve does not shift, then aggregate supply will ________, real GDP will ________, and the price level will ________
A) increase; remain the same; increase B) decrease; decrease; increase C) increase; increase; increase D) remain the same; increase; increase E) decrease; remain the same; decrease
In the country of Bora Bora, consumers buy large quantities of alcohol, tobacco, and coffee. Last year, the prices of these goods each increased by 10 percent. The quantities demanded for these goods fell by 10, 3, and 8 percent, respectively. If the government is thinking about imposing a unit tax on one of these goods, which good should they choose to tax to raise the most tax revenue, and why?
a. alcohol; because the price elasticity is highest b. tobacco; because the price elasticity is lowest c. coffee; because it will have the lowest tax elasticity d. tobacco; because it will have the highest tax elasticity e. alcohol; because the burden of taxation would be more even
Which of the following statements is true?
A. Both nominal and real interest rates are procyclical and lagging. B. Both nominal and real interest rates are procyclical and leading. C. Nominal interest rates are procyclical and real interest rates are countercyclical. D. Nominal interest rates are procyclical and real interest rates are acyclical.
In the Microsoft case, the company was accused of violating that law the prohibits
A. firms from attempting to undercut competitors' prices. B. firms from successfully achieving monopoly status. C. firms from using their monopoly in one market to increase market share in another. D. charging prices that are unfairly too high.