If the marginal propensity to save is 0.10 and the initial decline in investment is $100, by how much will aggregate demand eventually decrease?
A. $100.
B. $10,000.
C. $1,000.
D. $900.
Answer: C
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How does the U.S. economy rank in size?
A. First in economic output B. Second in economic output C. Third in economic output D. Fourth in economic output E. Fifth in economic output
Goods and services produced in the United States and sold in other countries are called
A) consumption goods and services. B) capital goods. C) government goods and services. D) export goods and services. E) import goods and services.
What is the difference between the average cost per unit for 5 units and the marginal cost of the 5th unit?
a. 196 b. 86 c. 40 d. 110
Suppose that there is an increase in the costs of production that shifts the short-run aggregate supply curve left. If there is no policy response, then eventually
a. because unemployment is low, wages will be bid up and short-run aggregate supply will shift right. b. because unemployment is low, wages will be bid down and short-run aggregate supply will shift right. c. because unemployment is high, wages will be bid up and short-run aggregate supply will shift right. d. because unemployment is high, wages will be bid down and short-run aggregate supply will shift right.