The multiplier is the ratio of the
A. change in the equilibrium level of real GDP to the change in autonomous expenditures.
B. change in autonomous expenditures to the change in the equilibrium level of real GDP.
C. change in induced expenditures to the change in autonomous expenditures.
D. equilibrium level of real GDP to the change in induced expenditures.
Answer: A
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At the national level, higher saving rates lead to ________ and higher standards of living.
A. greater investment B. slower growth C. greater current consumption D. crowding out
Which of the following statements regarding the marginal product curve is FALSE?
A) Increasing marginal returns occur only when the total product increases as the number of workers increases. B) Increasing marginal returns is due to greater efficiency from specialization in the production process. C) The law of diminishing returns applies in the short run. D) Along the marginal product curve, increasing marginal returns occur first and then diminishing marginal returns.
The formula for calculating the CPI is
A) (Expenditures in the current year × Expenditures in the base year)/100. B) (Expenditures in the base year/Expenditures in the current year). C) (Expenditures in the base year × 100)/(Expenditures in the current year). D) (Expenditures in the current year/Expenditures in the base year) × 100.
Assets whose returns have a high positive correlation are considered:
a. highly risky compared with those whose returns have lower or negative correlations.. b. completely risk free. c. less risky compared to those which have a low positive correlation. d. partially risky.