A government spending multiplier of 1.5 would imply that a $1 trillion stimulus package would be expected to generate
A) $0.15 trillion in GDP
B) $1.5 trillion in GDP
C) $3 trillion in GDP
D) $15 trillion in GDP
Answer: B) $1.5 trillion in GDP
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If the demand curve for gasoline is relatively steep, then
a. higher gasoline prices would cause a large number of people to stop driving. b. the law of demand does not hold for gasoline. c. shifts in the supply curve for gasoline will have relatively little effect on the price of gasoline. d. the price of gasoline has relatively little effect on drivers' decision to buy gasoline.
Since 1980, discount loans have been available
A) only to member banks of the Federal Reserve System. B) only to national banks. C) only to state banks. D) to all depository institutions.
The development of new technology typically
a. shifts the supply curve to the right b. reduces profits c. results in a downward movement along a supply curve d. increases costs of production e. shifts the demand curve to the right
Suppose the Fluffy Pillow Company produces pillows. The number of pillows it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each pillow can be sold for $2 more than the cost of the materials needed to produce it. Number of workers per hourNumber of pillows per hour00124242354460561 What is the value of the marginal product of the 2nd worker hired each hour?
A. $84 B. $24 C. $16 D. $36