If AD excess equals $40 billion and the MPC equals 0.75, then the desired fiscal restraint equals
A. $160 billion.
B. $30 billion.
C. $10 billion.
D. $53.33 billion.
Answer: C
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According to the monetarist view, the aggregate supply curve is:
A. Horizontal until full employment is reached and then it becomes vertical. B. Horizontal at all levels of output. C. Vertical at the natural rate of unemployment. D. First horizontal, then upward sloping, and finally vertical.
When a price ceiling is set below the equilibrium price, the quantity supplied ________ the quantity demanded and ________ exists
A) is less than; a surplus B) is less than; a shortage C) is greater than; a surplus D) is greater than; a shortage E) equals; an equilibrium
A 10 percent increase in the price of tablets leads to a 10 percent decrease in the quantity demanded of tablets. The absolute price elasticity of demand for tablets is
A) 3. B) 0.3. C) 1. D) 10.
Which of the following would be viewed as a common property problem?
A) Your property is burglarized. B) Vandals damage your property. C) People pick all of the flowers in a public park. D) To be safe you must lock your door at night.