If the MPS is 0.4 and t is 0.1, then the tax multiplier is about -1.36.
Answer the following statement true (T) or false (F)
True
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The market price of physical capital is $10 and the market wage rate is $5. If a firm is optimally hiring an additional unit of physical capital, the value of the marginal product of physical capital is:
A) $1. B) $2. C) $10. D) $50.
All but one of the following economists were awarded a Nobel prize for their contributions to experimental economics and their explorations of the influence fairness has on consumer decision-making
Which economist did not receive a Nobel Prize for this work? A) Daniel Kahneman B) Vernon Smith C) Alan Krueger D) Maurice Allais
The Phillips curve indicates that when the labor market is ________, production costs will ________ and aggregate supply increases
A) easy; rise B) easy; fall C) tight; fall D) tight; rise
Which of the following statements is most accurate?
a. Most economic historians believe that the policies of the federal government were an important cause of the Great Depression. b. Most economic historians believe rapid increase in inequality caused the Great Depression. c. The US experienced a relative absence of cyclical unemployment and was relatively free from the mass joblessness that had previously plagued the nation. d. More homogenous communities chose to have higher taxes to fund schools.