Assume that C = $3000 + 0.75(Y) and that intended investment = $1,000 . If national income is currently $20,000, then the economy's income will grow
Indicate whether the statement is true or false
F
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The expenditure multiplier arises because one person's additional expenditure becomes another person's additional income that will generate additional
A. cyclical unemployment. B. menu costs. C. expenditure. D. investment demand.
Studies by the World Bank have underscored the successes of countries that have adopted trade liberalization policies
a. True b. False
Nominal GDP is defined as the:
A. Value of output in current dollars. B. Dollar value of services but not goods. C. Output produced by domestically owned factors of production regardless of where the factors are located. D. Value of output in constant prices.
The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP (1996 $ billions)(A)July 19531992.2(B)May 19541941.0(C)Apr. 19572182.7(D)Apr. 19582117.4(E)Apr. 19602391.0 The economy experienced a recession that lasted from:
A. May 1954 to April 1957. B. May 1954 to April 1958. C. July 1953 to April 1957. D. July 1953 to May 1954.