A $100 billion decrease in government purchases would:
a. increase AD by $500 billion if MPC = 0.8.
b. decrease AD by $300 billion if MPC = 2/3.
c. increase AD by $200 billion if MPC = 0.5.
d. decrease AD by $40 billion if MPC = 0.4.
b
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According to the economic way of thinking, government officials tend to vote on legislation that
A) concentrates benefits on a well-organized group. B) disperses costs throughout a great number of politically unorganized people. C) generates short-term benefits and postpones the costs. D) does all of the above. E) does none of the above.
From a purely economic point of view, discrimination is established if: a. black teenagers earn more than white teenagers do
b. all factors are earning an amount equivalent to their marginal revenue product. c. women earn less than men do. d. equivalent factors earn different payments for equal contributions to output.
The real risk-free interest rate is equal to:
a. The difference between the nominal interest rate and expected inflation. b. The tradeoff that society must make between consuming now and consuming later. c. The rate at which the International Monetary Fund borrows from the World Bank. d. The rate at which banks lend to their best customers (i.e., lowest credit risk). e. None of the above is correct.
How many U.S. labor unions have at least 1.3 million members?
A. 0 B. 2 C. 6 D. 9