The expenditure multiplier equals 5 and there is a $3 million increase in investment. Equilibrium expenditure
A) increases by $5 million.
B) increases by $0.60 million.
C) increases by $15 million.
D) decreases by $15 million.
E) increases by $3 million.
C
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If real salaries decrease but nominal salaries do not, this means that
A) prices have risen. B) prices have fallen. C) prices have not changed. D) the purchasing power of money has increased.
The figure above shows a monopoly firm's demand curve. At point t
A) demand is elastic. B) demand is unit elastic. C) demand is inelastic. D) total revenue is at a minimum.
Which of the following people would be considered frictionally unemployed?
a. The President of the United States b. An elementary school student c. A lifeguard unemployed during the winter d. A high school graduate entering the labor market for the first time e. A person laid off from his job
When marginal cost is greater than marginal benefit at the current activity level, the decision maker can increase net benefit by decreasing the activity because
A. net benefit is upward sloping at this point. B. total cost will fall by more than total benefit will fall. C. marginal cost is rising faster than marginal benefit is falling. D. total benefit will rise by more than total cost will rise.