The long-run aggregate supply curve would shift right if the government were to
a. reduce the minimum-wage.
b. make unemployment benefits more generous.
c. raise taxes on investment spending.
d. All of the above are correct.
a
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The marginal propensity to consume (MPC) is calculated by which formula?
a. MPC = change in DI divided by change in C b. MPC = change in GDP divided by change in DI c. MPC = change in C divided by change in DI d. MPC = change in C divided by change in GDP
Long-run economic growth is consistent with:
A. Expanding the aggregate demand curve. B. Expanding the production possibilities curve. C. An increase in government spending. D. An increase in GDP per capita.
Decisions to buy or sell securities at the Fed are made by the:
A. Congress. B. Federal Open Market Committee. C. Federal Deposit Insurance Corporation. D. President's Council of Economic Advisors.
Which of the following types of government spending is included when calculating GDP?
A) spending at the federal level B) spending at the state level C) spending at the municipal level D) all of the above E) only A and B