A $100 billion increase 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. decrease AD by $200 billion if MPC = 0.9.
d. decrease AD by $40 billion if MPC = 0.4.
a
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The aging of the labor force in the United States is likely to ________ the natural rate of unemployment; an increase in the efficiency of the labor market is likely to ________ the natural rate of unemployment.
A. increase; decrease B. decrease; decrease C. decrease; increase D. increase; increase
Neoclassical growth theory assumes that technological progress
A) is determined by investment. B) is determined by saving. C) responds to economic incentives. D) is a purely chance event.
As of 2008, the members of the WTO account for 97 percent of the world's international trade
Indicate whether the statement is true or false
Economists are unanimous in their belief that advertising is socially inefficient
a. True b. False Indicate whether the statement is true or false