If the marginal propensity to consume (MPC) is 0.75, a $50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:
a. increase by $50.
b. decrease by $50.
c. increase by $200.
d. decrease by $200.
d
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If we compare the United States to France, we see that potential GDP per person in France is ________ that in the United States because the French tax wedge is ________ the U.S. tax wedge
A) greater than; larger than B) the same as; the same as C) greater than; smaller than D) less than; smaller than E) less than; larger than
During the 1990s, which of the following experienced the slowest rate of growth in real GDP per person?
A) Japan B) The big 4 nations of Europe C) United States D) Canada
Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing consumer surplus after the imposition of the price floor?
A) C + E B) B + C + D + E C) A+ B + D D) A
Which type of ratio measures the ability of a business to meet short-term financial obligations?
a. liquidity ratios b. activity ratios c. financial leverage ratios d. profitability ratios e. value of the firm ratios