If the MPC in an economy is 0.8, government could shift the aggregate demand curve rightward by $100 billion by
A. increasing government purchases by $25 billion.
B. decreasing taxes by $25 billion.
C. increasing government purchases by $80 billion.
D. decreasing taxes by $100 billion.
Answer: B
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Supply and demand curves both
a. have negative slopes b. have positive slopes c. relate quantities to prices d. reflect the actions of producers e. reflect the actions of consumers
A failure in coordination between workers and employers is most likely to cause an expansionary gap.
a. true b. false
Since 2000, developing countries received large net capital inflows in the form of
A. official loans from foreign governments and the International Monetary Fund (IMF). B. debt service. C. foreign direct investments. D. short-term lending.
Fixed investment is
A. capital purchase by businesses of newly produced durables. B. the change in stocks of finished goods. C. the change in the stocks of goods in process. D. purchases by consumers of newly produced consumer durables.