An economy has no imports or income taxes. The MPC is 0.75 and real GDP is $120 billion. Businesses increase investment by $4 billion. The multiplier is ________ and the change in real GDP from the increase in investment is ________ billion
A) 5; $16 B) 4; $25 C) 0.75; $3 D) 5; $25 E) 4; $16
E
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In a monopoly market, there is (are) ________ seller(s)
A) one B) a few C) many D) very many
Does a perfectly competitive producer have any incentive to lower its price so it is below the current market price? Explain your answer
What will be an ideal response?
You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. If the return on your investment is ________, then you will earn an economic loss.
A. less than 6% B. exactly 6% C. greater than 6% D. It is indeterminate from the given information.
If the real national output is less than the equilibrium real national output producers find
A. their inventories decreasing and expand their production. B. their inventories increasing and expand their production. C. their inventories decreasing and contract their production. D. their inventories increasing and contract their production.