If spending increased by $100, and the GDP increased $400 as a result, the MPC must be:
A. 0.70
B. 4
C. 0.75
D. 2
Answer: C
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Refer to Figure 18.3. In autarky, the maximum amount of pogo sticks that Livonia can produce is
A) 120. B) 100. C) 80. D) 40.
For managers who know that they have no chance of meeting their goals, high powered sales goals
a. Give an incentive to spread out their sales into the year b. Give an incentive to accelerate costs or delay sales c. Give no incentive to accelerate sales or delay costs d. None of the above
If the MPC is 0.8, and the government spends an additional $100b, the overall effect on GDP will be:
A. $400b. B. $500b. C. $120b. D. $180b.
Which of the following is a microeconomic question?
A. Should companies pay for employees' health insurance? B. Why do some countries have higher economic growth rates than other countries? C. Should Congress and the president take action to reduce the unemployment rate? D. Should the Fed attempt to influence the interest rate to control potential inflation?