Let C = 300 + 0.9y and I = 125. The value of the multiplier is
A) 0.9. B) 9. C) 10. D) 27.
C
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An increase in investment spending will be multiplied into a larger increase in GDP illustrates the concept of
A. expansionary fiscal policy. B. the multiplier. C. an inflationary boom. D. international trade.
Inflation can be started by
A) a decrease in aggregate supply or a decrease in aggregate demand. B) a decrease in aggregate supply or an increase in aggregate demand. C) an increase in aggregate supply or an increase in aggregate demand. D) an increase in aggregate supply or a decrease in aggregate demand. E) an increase in aggregate demand or an increase in potential GDP.
The slope of a production possibilities curve is ________ because ________.
A. positive; producing more of one good requires producing more of the other B. negative; producing more of one good requires producing less of the other C. positive; producing more of one good requires producing less of the other D. negative; producing less of one good requires producing less of the other
Between points "b" and "c" in the above figure, the opportunity cost of 250 more bushels of corn is
A. 800 yards of cloth. B. 600 yards of cloth. C. 200 yards of cloth. D. 250 yards of cloth.