The expenditure multipliers occur because
A) any change in real GDP must also change the price level.
B) a change in households' incomes changes autonomous expenditure.
C) government expenditure on goods and services change by a proportional amount to government taxes.
D) a change in autonomous expenditures changes households' incomes.
E) a change in autonomous expenditure causes real GDP to change in the opposite direction.
D
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The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the higher productivity of high-skilled workers
Indicate whether the statement is true or false
If reserves in the banking system increase by $100, then checkable deposits will increase by $667 in the simple model of deposit creation when the required reserve ratio is
A) 0.01. B) 0.05. C) 0.15. D) 0.20.
Among the world’s major industrial countries, the nation with the lowest unemployment rate in 2010 was
a. Germany. b. the United States. c. Japan. d. France.
The accelerator is an integral part of
a. externally generated cycles b. the war-induced cycle c. the housing cycle d. the innovation cycle e. internally generated cycles