The larger the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in autonomous spending on short-run equilibrium output.
A. smaller; smaller
B. smaller; larger
C. larger; smaller
D. larger; larger
Answer: D
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A commodity or service whose consumption by one person does not preclude others from also consuming it is called a
A) private good. B) public good. C) Giffen Good. D) Coase Good.
Differences in human capital are usually large and easily observable
Indicate whether the statement is true or false
Other things equal, a country's long-run aggregate supply will shift to the left when _____
a. the aggregate expenditure on education rises b. the productivity of labor rises c. the quantity of natural resources rises d. the mortality rate rises e. the amount of investment rises
Total cost includes:
A. only ongoing expenses, not one-time expenses. B. one-time expenses, but not ongoing expenses. C. only expenses that are variable. D. one-time expenses and ongoing expenses.