At the equilibrium level of real GDP, total production equals total:
a. saving.
b. investment.
c. net exports.
d. spending.
d
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Which of the following statements regarding a price-taking firm is correct?
A) Demand = average revenue > marginal revenue. B) Demand = marginal revenue > average revenue. C) Demand = price = average revenue = marginal revenue. D) Demand = price > average revenue > marginal revenue.
If banks cannot lend all of their excess reserves:
a. the money multiplier increases. b. the money multiplier decreases. c. the money multiplier stays the same. d. the amount of loans by the bank increases. e. checkable deposits decrease.
The rule of reason was an antitrust law guideline that emphasized the importance of ________ over ________
a. price; quantity b. quantity; price c. law; the economy d. size; behavior e. behavior; size
If the spending multiplier is 3 and the desired amount of increase in real GDP is $270 billion, then by how much would government spending have to increase?
a. $270 billion b. $90 billion c. $30 billion d. $10 billion