If the multiplier is 6 and if there is no crowding-out effect, then a $60 billion increase in government expenditures causes aggregate demand to
a. increase by $250 billion.
b. increase by $333 billion.
c. increase by $360 billion.
d. None of the above are correct.
c
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In the long run, monopolistically competitive firms can make an economic profit because of product differentiation
Indicate whether the statement is true or false
Which of the following Nobel laureates became known for the study of asymmetric information?
A) Michael Spence B) Ronald Coase C) George Ackerlof D) Gary Becker
An increase in the general level of prices in the goods and services market that is accompanied by a short-run expansion in output is most likely caused by
a. an unanticipated decrease in aggregate demand. b. an unanticipated increase in aggregate demand. c. a favorable supply shock that shifts SRAS to the right. d. an unfavorable supply shock that shifts SRAS to the left.
Which of these conclusions does the graph U.S. Unemployment by Race or Ethnic Group support?
a. Businesses tend to give jobs to white workers before they will hire black or Hispanic
workers.
b. The unemployment rate for Hispanic workers is determined by whether employers
perceive them as white or black.
c. White workers have a lower unemployment rate because they make up less of the
U.S. workforce than black and Hispanic workers.
d. White, black, and Hispanic workers all constitute roughly the same proportion of the U.S. workforce.