Which of the following formulas is used to find the cumulative increase in AD from a particular fiscal stimulus?
A. The multiplier × fiscal stimulus.
B. Fiscal stimulus ÷ MPC.
C. MPC × fiscal stimulus.
D. Fiscal stimulus ÷ the multiplier.
Answer: A
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In the figure above, 10 percent of income in country C is distributed to the
A) richest 10 percent of the households. B) poorest 10 percent of the households. C) poorest 30 percent of the households. D) poorest 70 percent of the households.
A high rate of inflation is likely to cause a:
A. high nominal interest rate. B. low nominal interest rate. C. low rate of growth of nominal GDP. D. decrease in nominal wages.
Compared to the poverty rate for non-Hispanic whites, the poverty rate for Hispanics is almost _______.
Fill in the blank(s) with the appropriate word(s).
The _____ marks the low point of a business cycle.
Fill in the blank(s) with the appropriate word(s).