Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect
A) multiplier B) expenditure C) aggregate demand D) consumption
A
You might also like to view...
For a normal good, if incomes rise, we would expect that the equilibrium price will increase and that the equilibrium quantity will increase
a. True b. False Indicate whether the statement is true or false
In 2008, Stark Finance Group suffered a huge loss in business. The best strategy to minimize the loss was to fire many employees. However, the CEO was against the idea and suggested reducing costs by decreasing the salary of each employee instead. He
believed this would benefit the employees, but it was observed that productive workers resigned because of the decrease in salary. Why do you think the CEO's idea did not work out? What would have been a more efficient course of action?
Which of the following will contribute to accelerated growth for the U.S. economy?
A. A decrease in factor mobility. B. A decrease in government involvement in copyright laws. C. A decrease in tax credits for research and development. D. Increased use of outsourcing for inputs and increased use of comparative advantage for trade in final goods and services.
If economic profits are earned in a competitive market, then over time
A. Normal profit will fall to zero as more firms enter. B. The market supply curve will shift to the left. C. Equilibrium price will rise as more firms enter. D. Additional firms will enter the market.