If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is
a. 2/3.
b. 3/2.
c. 2.
d. 3.
e. 8.
d
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Private placements avoid
A) restrictive agreements. B) SEC registration costs. C) the need for collateral. D) the primary market.
If the actual price level is higher than the expected price level, the economy will: a. have no structural unemployment. b. experience a recession
c. experience stagflation. d. expand output in the short run. e. have no seasonal unemployment.
In calculating gross domestic product, investment refers to the purchase of new ______________ goods.
a. quality b. capital c. government d. superior
Which of the following is not correct?
a. Economists who argue that labor taxes are highly distorting believe that labor supply is fairly elastic. b. Economists who argue that labor taxes are not highly distorting believe that labor supply is fairly inelastic. c. Economists who argue that labor supply is fairly inelastic cite elderly workers who adjust the date they retire as an example. d. Economists who argue that labor supply is fairly elastic cite workers who adjust the hours of overtime that they work as an example.