If income taxes are incorporated into the discussion of the expenditure multiplier, the expenditure multiplier becomes
A) larger.
B) smaller.
C) zero.
D) negative.
B
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When the economy is in equilibrium, there will be no unemployment or inflation
Indicate whether the statement is true or false
Countries that devote a large share of GDP to investment, such as Singapore and S. Korea, tend to have
a. high growth rates. b. stable growth rates. c. low growth rates. d. highly cyclical growth rates. e. there is no relationship between investment and growth.
In order for Say's law to hold in a money economy,
A) there must be more than four goods. B) funds saved must give rise to an equal amount of funds earned. C) funds saved must give rise to an equal amount of funds invested. D) none of the above
Recall the Application about how the effect of a more dangerous job on wages may be used to calculate the value of a statistical life to answer the following question(s).According to the Application, if a worker is willing to take a $2,000 pay cut in order to reduce the probability of dying by .001, then the value of a statistical life is:
A. $2,000,000. B. $2,000.001. C. $2. D. $20,000,000.