Assume the current equilibrium output is $500 billion, the spending multiplier is 5, and the government increased spending by $10 billion. If the new equilibrium output increased to $550 billion, most likely the planned investment schedule will look like:
A) down sloping and curved
B) vertical
C) horizontal
D) upward sloping and curved
Ans: B) vertical
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Basically the United States' high rate of population growth since the time of George Washington's presidency
A. has been a drag on the United States' rate of economic growth. B. pushed up the United States' rate of unemployment. C. created a growing problem of not enough food to feed everyone. D. provided a market for the United States' farmers and manufacturers.
An excludable good is a good that a producer can prevent people from consuming
Indicate whether the statement is true or false
Peter's monthly income increases from $1,500 to $1,600. As a result, he increases the number of DVDs he buys per month from 2 to 3. Peter's demand for DVDs is
A) price elastic. B) price inelastic. C) income elastic. D) income inelastic.
A 10 percent rise in the price of housing reduces the quantity demanded of housing by 3 percent. We can conclude that the demand for housing is:
a. inelastic. b. elastic. c. unitary elastic. d. perfectly elastic.