A life insurance company requires new applicants to have a medical exam prior to writing the insurance policy. This requirement is an example of
a. signaling.
b. screening.
c. moral hazard.
d. adverse selection.
b
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If MPC = 0.75, a $40 billion decrease in government purchases would have what size effect on the "first round" of changed consumption, and what effect on AD?
a. reduce "first round" consumption by $160 billion; reduce AD by $640 billion b. reduce consumption by $120 billion; reduce AD by $480 billion c. reduce consumption by $40 billion; reduce AD by $160 billion d. reduce consumption by $30 billion; reduce AD by $160 billion
If the government uses stabilization policies to reduce inflation, the economy may have to suffer
a. higher rates of real GDP growth. b. higher rates of unemployment. c. lower rates of unemployment. d. higher rates of price level growth.
If GDP is currently $13 trillion and is growing at a rate of 2.3% per year, how long will it take GDP to reach $26 trillion?
A) about 15 years B) about 17 years C) about 25 years D) about 30 years
Refer to the information provided in Figure 24.4 below to answer the question(s) that follow.
Figure 24.4Refer to Figure 24.4. What is the value of Point B?
A. $7,000 billion B. $6,000 billion C. $3,500 billion D. cannot be determined from the given information