The multiplier is the ratio of the
a) change in real GDP to the change in autonomous expenditures
b) equilibrium level of real GDP to the change in induced expenditures
c) change in induced expenditures to the change in autonomous expenditures
d) change in autonomous expenditures to the change in real GDP
a) change in real GDP to the change in autonomous expenditures
You might also like to view...
In the RBC model, the importance of "intertemporal substitution" of labor supply is ________, which results in a rather ________ labor supply curve
A) denied, flat B) denied, steep C) emphasized, flat D) emphasized, steep
According to the equation of exchange, the money supply times the velocity of money equals the
A) price level. B) growth rate of the money supply. C) real GDP. D) nominal GDP.
Consumer surplus is a good measure of economic welfare if policymakers want to
a. maximize total benefit. b. minimize deadweight loss. c. respect the preferences of sellers. d. respect the preferences of buyers.
Income inequality is
A. Not an issue for wealthy countries such as the United States and Germany. B. Often greatest in the poorest countries such as Namibia and Botswana. C. Not an issue in the United States because of the progressive federal tax system. D. A global issue because the poorest tenth of the population gets 20-30 percent of total income.