In the 2007-2009 period, the expenditure level in the United States intersected the 45-degree line below potential GDP, causing
a. hyperinflation.
b. a growing trade deficit.
c. a government budget surplus.
d. unemployment.
d
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The urban consumers that the CPI is based on includes:
A. retired persons. B. greeters at Walmart. C. bank tellers. D. All of these are included.
When demand is unit elastic, an increase in price will cause
A. a decrease in total revenue. B. no change in total revenue. C. a change in total revenue in either direction depending on whether the price is increasing or decreasing. D. an increase in total revenue.
The 1935 Act granting workers the right to form unions and bargain collectively is known as
A) the National Labor Relations Act or Wagner Act. B) the Wheeler Act. C) the Taft-Hartley Act. D) the Modernization Act.
The MPC in the U.S. economy has been estimated to be near 0.95 . If this is an accurate measure, then the numerical value for the multiplier would be
a. 0.9. b. 1.8. c. 9.5. d. 10.0. e. 20.0.