Surge in government demand (G) discourages some private demand (I) and this is a major reason as to why the oversimplified formula: 1/(1–MPC) ____________ the size of the multiplier.
A. exaggerates
B. underestimates
C. has no impact on
D. none of these
Answer: A
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A firm's labor demand curve is also its marginal revenue product curve. For both the perfectly competitive firm and the output price maker, the labor demand curve slopes downwards
However, there is a difference in the reasons why the labor demand curve slopes downwards. What is this difference?
When governments run budget surpluses, ceteris paribus, public saving as well as national saving decreases
a. True b. False Indicate whether the statement is true or false
Sue earns income of $80,000 per year. Her average tax rate is 40 percent. Sue paid $4,500 in taxes on the first $30,000 she earned. What was the marginal tax rate on the rest of her income?
a. 15 percent b. 32 percent c. 40 percent d. 55 percent
The balance of trade measures the:
A. difference between the value of imports and that of exports. B. exchange rate needed to make imports equal exports. C. share of U.S. exports going to various regions of the world. D. share of U.S. imports coming from various regions of the world.