If the marginal propensity is 0.75, then a $100 increase in investment will result in a maximum increase in equilibrium real gross domestic product of
A) $40.00
B) $100.00
C) $133.33
D) $400.00
E) $500.00
Ans: D) $400.00
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If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined
A) the quantity of goods or services that can be produced by one hour of work B) nominal GDP C) labor force participation D) the working-age population Article Summary According to the Office for National Statistics in the United Kingdom, productivity in the UK in 2014 was well below the average of the G7 countries, only faring better than Japan. The G7 is a group of the seven most industrialized countries, and includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Compared to the G7 average, the UK was 20% less productive per hour worked, and output was also 20% worse when measured on a per worker basis. The productivity gap was the largest for the UK since estimates began in 1991. Worker productivity was lower in all of the G7 nations in 2014 than it would have been had trends prior to the 2007-2009 recession continued, with the productivity gap of 18 percent in the UK significantly higher than the 7% gap for the other G7 nations. In terms of output per hour worked, the UK was behind Germany, France, and the United States by 32 to 33 percentage points. Source: "UK's poor productivity figures show challenge for government," Guardian, September 18, 2015.
Under the Employment Act of 1946, what action did the federal government take for the first time in U.S. history?
(a) Assuming power and responsibility for managing the world economy (b) Assuming power and responsibility for managing the U.S. economy (c) Relinquishing all influence for managing the U.S. economy to state governments (d) Relinquishing all influence for managing the U.S. economy to the private sector
Which of the following characterizes the classical view of the economy?
a. The economy is inherently unstable. b. Prices and wages are not flexible. c. The economy will "self-adjust" to full employment. d. None of these.
If someone asked you to predict the price of gas in a month, and you decided to just guess by adding a few cents to the current price of gas, which you know, your answer would exhibit:
A. rational expectations. B. time inconsistency. C. anchoring. D. transitivity.