When the MPC = 0.6, the multiplier is
A) 0.40.
B) 2.50.
C) 1.67.
D) 6.00.
B
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If the federal budget has an actual budget surplus of $75 billion, but a cyclically adjusted budget surplus of $50 billion, then the economy must be above potential real GDP
Indicate whether the statement is true or false
The Interstate Highway system in the U.S. has boosted economic productivity mainly through ________
A) the positive impact on tourism B) reduction in transportation costs C) increased competition among fast food restaurants D) increased speed of military deployments
Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, demand shifts to the ________ and supply shifts to the ________
A) left, left B) left, right C) right, left D) right, right
For many years the U.S. government imposed quotas on cheap, Middle Eastern oil imports. The U.S. consumer consequently paid $3 billion more per year for oil products. A likely rationale for such a policy is
a. people in the oil industry deserved the transfer. b. conservation. c. one cannot be dependent on foreign supplies of so crucial a resource. d. American oil was of higher quality and deserved a higher price.