A $1 million increase in investment spending will raise equilibrium output (real GDP) by:
a. less than $1 million.
b. exactly $1 million.
c. between $0.5 and $1.5 million.
d. more than $1 million.
d
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Refer to Scenario 12.2. In this game, if both players end up playing their tough strategies, then
A) Eliza will donate a kidney and Jerome will not donate. B) both Eliza and Jerome will donate a kidney. C) Jerome will donate a kidney and Eliza will not donate. D) neither Eliza nor Jerome will donate a kidney.
An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer
What will be an ideal response?
A pure private good is one
a. that is nonrival and nonexcludable b. that is rival but excludable c. that is rival and excludable d. that is nonrival but excludable e. one whose production imposes a cost on third parties
Which of the following is used to depict all combinations of goods that are affordable with a given income and given prices?
A. A budget constraint. B. An indifference map. C. An indifference curve. D. A demand curve.