A $1 billion increase in investment will cause a:
A. (1/MPS) billion increase in GDP.
B. (MPS) billion increase in GDP.
C. (1 - MPC) billion increase in GDP.
D. (MPC - MPS) billion increase in GDP.
A. (1/MPS) billion increase in GDP.
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Explain what the poverty line is and its purpose
What will be an ideal response?
When a price shock has occurred, inflation returns to its pre-shock rate ________
A) in the period following the price shock B) in the period when output has returned to its pre-shock rate C) once the output gap has returned to zero D) only in the long run E) none of the above
The government's benefit from a tax can be measured by
a. consumer surplus. b. producer surplus. c. tax revenue. d. All of the above are correct.
In the long run, the entry of new firms in an industry
A) harms consumers by forcing prices up above the level of average cost. B) benefits consumers by forcing prices down to the level of total cost. C) harms consumers by forcing prices up above the level of total cost. D) benefits consumers by forcing prices down to the level of average cost.