In a certain economy, when income is $500, consumer spending is $375 . The value of the multiplier for this economy is 5 . It follows that, when income is $510, consumer spending is
a. $381.67.
b. $378.
c. $383.
d. $383.33.
c
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If you were a member of the NBER business-cycle dating committee, would you declare that the U.S
economy is now in a recession? Why? Describe the major variables that you would look at to determine whether the economy is in a recession or not, and what features of the data you would look for.
A.W. Phillips's discovery of a particular relationship between unemployment and inflation for the United Kingdom
a. could not be extended to other countries, despite many researchers' attempts to provide that extension. b. was quickly extended to other countries by researchers. c. was extended to only one other country — the United States. d. was harshly criticized by the American economists Paul Samuelson and Robert Solow on the grounds that Phillips's study was fundamentally flawed.
Along the short run aggregate supply curve, if the price level increases, then output will ______
Fill in the blank(s) with the appropriate word(s).
All else equal, U.S. exports to Germany create a:
A. demand for European euros. B. supply of European euros. C. supply of American dollars. D. shortage of European euros.