If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP by $200 million, then by how much would they have to change taxes?
a. -$240 million
b. -$200 million
c. -$180 million
d. -$50 million
d
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Refer to Table 16-3. If Julie charges $10 per hour, what is the value of the consumer surplus received by Dawn?
A) $2 B) $10 C) $12 D) $22
The city of Hope has a labor force of 1000. Twenty people lose their jobs each month and remain unemployed for exactly one month before finding jobs
On January 1, May 1, and September 1 of each year, 50 people lose their jobs for a period of four months before finding new jobs. What is the unemployment rate in any given month? A) 2% B) 3% C) 5% D) 7%
Teaser interest rates refer to
A) the initial rates that are typically below market rate and are offered by lenders to entice the clients to borrow. B) mortgage rates. C) rates charged on all subprime mortgages. D) none of the above.
If a minimum wage is set above the equilibrium market wage,
A) lower-skilled workers will have an easier time finding jobs. B) the quantity of labor demanded will be below the quantity of labor supplied. C) the quantity of labor supplied will be below the quantity of labor demanded. D) highly-skilled workers will have a harder time finding jobs.