An economic model should capture
A) the essential relationships that help to analyze the problem.
B) all possible variables that apply to the problem.
C) only social value related variables.
D) all of the above.
Answer: A
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If an economy experiences a $0.8 trillion increase in investment resulting in an increase in real GDP from $10 trillion to $12 trillion,
a. what is the change in equilibrium expenditure? b. what is the change in autonomous expenditure? c. what is the multiplier? d. how would an increase in the marginal tax rate effect the multiplier?
The marginal cost curve shows the per-unit cost associated with various levels of output.
Answer the following statement true (T) or false (F)
The wartime demand for manufacturing goods directly impacted the economy in which of the following ways?
(a) Increased demand for factory workers (b) Increased demand for imported goods (c) Decreased demand for agricultural goods (d) All of the above
In Country X, the government requires employers to collect 9 percent of every employee’s compensation as payroll tax. This is an example of
A. progressive tax. B. regressive tax. C. digressive tax. D. proportional tax.