A general formula for the multiplier is
What will be an ideal response?
1/MPS
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The above table gives data for the nation of Mojo. At what level of real GDP is the economy at equilibrium expenditure?
A) $3.0 trillion B) $9.0 trillion C) more than $12.0 trillion. D) $6.0 trillion E) $12.0 trillion
Discrimination by customers creates a wage differential between two groups by creating a difference in the two groups' perceived
A) supply of labor. B) value of marginal product. C) marginal cost of labor. D) minimum wage.
The international financial crisis of 2007 was the result of
A) failure of the Euro currency. B) runaway inflation in the U.S. C) a deep global recession. D) the collapse of global currency markets. E) defaults on U.S. mortgage-backed securities.
Purchasing power parity does a ________ job in explaining movements in nominal exchange rates in the short run and does a ________ job in explaining movements in nominal exchange rates in the long run
A) reasonable; reasonable B) reasonable; poor C) poor; reasonable D) poor; poor