Suppose an initial increase in government expenditure increases output by $50,000 . If the size of the multiplier is 2.5, the size of the initial increase in government expenditure was:
a. $25,000
b. $20,000.
c. $12,5000.
d. $1250.
e. $30,000.
b
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Refer to Table 11-1. Based on the table above, which country has a higher standard of living and why?
A) Sweden has a higher standard of living because their GDP per capita is higher. B) Sweden has a higher standard of living because their GDP is higher. C) Ireland has a higher standard of living because their GDP per capita is higher. D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.
All players have dominant strategies.
Answer the following statement true (T) or false (F)
External shocks include all of the following except
A. Wars. B. Population growth. C. Natural disasters. D. Terrorist attacks.
What does the long-run average cost curve show?
A) the interaction between average fixed cost and marginal cost B) the lowest average cost to produce each output level in the long run C) the distinction between long-run fixed and long-run variable costs D) the lowest average marginal cost of producing each output level at any time E) Answers A, B, and C are correct.