If the expenditure multiplier is 10 and investment spending decreases by $1,000 billion, what will be the change in GDP?
a. -$10,000
b. $2,500
c. $1,000
d. $10,000
e. -$1,000
A
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According to this Application, the longer than usual harmattan has impacted the supply curve for cocoa pods, shifting the supply curve to the ________ due to a(n) ________ in cocoa yields
A) right; decrease B) left; decrease C) right; increase D) left; increase
How does the contribution to national output of a wheat farmer get counted in the gross domestic product if the Bureau of Economic Analysis measures only the value of final goods such as loaves of bread?
A) Agricultural production is not part of GDP. B) It is counted separately by the Department of Internal Revenue. C) It is included in the cost of materials purchased by those who sell loaves of bread. D) It is not counted, which results in an underestimation of GDP. E) Wheat is also a final good because it is more ultimate than bread.
If Ann's utility function is U = 3W0.5, and she invests in a business which can yield $6,400 with probability 1/5, and $3600 with probability 4/5, then her Arrow-Pratt measure of risk aversion is
A) 0.5/w. B) 1/w. C) 1.5w. D) 3/w.
Which of the following would not increase French exports to the United States?
a. an appreciation of the U.S. dollar b. an appreciation of the euro c. a depreciation of the euro d. an increase in French preferences for American goods e. an increase in real income in France