As a result of the recent financial crisis, some analysts believed that the MPC in the U.S. declined. If this is true, the value of the multiplier is now
A. smaller.
B. larger.
C. the same.
D. magnified to a larger amount.
Answer: A
Economics
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The law of demand implies that:
What will be an ideal response?
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Suppose an industry initially had been perfectly competitive and then became a monopoly. Which of the following would occur?
a. Consumer surplus would decrease. b. Consumer surplus would increase. c. Producer surplus would decrease. d. The deadweight loss would be eliminated.
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The average number of months between price changes for gasoline is:
A. 0.2. B. 0.6. C. 1.0. D. 1.8.
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Sources of increasing returns that help raise productivity growth include the following, except:
A. More specialized inputs B. Spreading of development costs C. Network effects D. Low unemployment
Economics