In a certain economy, when income is $100, consumer spending is $60 . The value of the multiplier for this economy is 4 . It follows that, when income is $101, consumer spending is
a. $60.25.
b. $60.75.
c. $61.33.
d. $64.00.
b
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Use the following table to answer the question below.(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Suppose that market demand is represented by two demanders in columns (1) and (2) and market supply is represented by two suppliers in columns (4) and (5). If the price were artificially set at $9
A. a surplus of 20 units would occur. B. demand would change from columns (3) and (2) to columns (3) and (1). C. the market would clear. D. a shortage of 20 units would occur.
To produce 10 shirts, the total cost is $80; to produce 11 shirts, the total cost is $99. The average total cost of the 11th shirt is equal to
A) $8. B) $9. C) $80. D) $99. E) $19.
If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the
A) quantity of labor supply decreases. B) quantity of labor supply increases. C) quantity of labor supplied does not change because there is no change in the real wage rate. D) More information about the dollar change in the price level and money wage rate are needed to answer the question.
If trade opens up between the two formerly autarkic countries, Australia and Belgium, then
A) the real income of both countries may increase. B) the real income of Australia and of Belgium will increase. C) the real income of Australia but not of Belgium will increase. D) the real income of neither country will increase. E) the real income of both countries will increase.