The multiplier effect tends to
A. decrease upswings and downswings in business activity.
B. promote stability of the general price level.
C. magnify small changes in spending into much larger changes in output and income.
D. reduce the MPC.
C. magnify small changes in spending into much larger changes in output and income.
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In response to a positive technology shock, which prediction of the sticky price model is difficult to reconcile with the data?
A) Output increases. B) Employment decreases. C) The price level decreases. D) Money is procyclical.
Here are four positions that Farmer Gomez can be in: (1 ) bad weather for Gomez and good weather for all other farmers; (2 ) bad weather for all farmers except Gomez (who witnesses good weather); (3 ) bad weather for all farmers; (4 ) good weather for all farmers. Assuming the demand for foodstuffs is inelastic, Farmer Gomez would probably rank these four positions, from best for him to worst for
him, the following way: A) 1,2,3,4. B) 2,1,3,4. C) 2,3,4,1. D) 4,3,2,1. E) 3,4,1,2.
Which of the following is an example of human capital?
A. The Internet B. Your ability to use Google C. The Google search engine on the Internet D. None of these is an example of human capital.
Refer to the figure above. What is the optimal quantity that the monopolist should produce?
A) 30 units B) 45 units C) 60 units D) 90 units