If the economy spends 80 percent of any increase in real GDP, then an increase in investment of $1 billion would result ultimately in an increase in real GDP of:
A. $0.
B. $0.8 billion.
C. $1.0 billion.
D. $5.0 billion.
Answer: D
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According to the above table, if real Gross Domestic Product (GDP) equals $30,000, what is the average propensity to consume?
A) 0.75 B) 0.67 C) 0.8 D) 0.87
Which of the following would be the best measure of the cost of living?
A) consumer price index B) GDP deflator C) real GDP per person D) real GDP
Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented
on this graph by A) OAEG. B) OBCG. C) BAEC. D) CEF.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. area (B + C) gets transferred from consumer to producer.
B. area (B + C) gets transferred from producer to consumer.
C. area B gets transferred from consumer to producer.
D. area B gets transferred from producer to consumer.