The government of Youland increased its spending by $100 billion. However, the corresponding change in output was much smaller than that predicted by the government expenditure multiplier. This occurs due to ________
A) crowding out B) a liquidity crisis
C) the internalization of an externality D) quantitative easing
A
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When economists say the price elasticity of supply is elastic, they mean that
a. suppliers are willing to produce much larger amounts of their good. b. suppliers are willing to produce only a small amount more of their good. c. consumers are willing to purchase much larger quantities of the good. d. the change in quantity supplied is relatively small compared to the change in price.
Figure 33.2 illustrates Lorenz curves for four different economies. Which economy should have a Gini coefficient of zero?
A. A. B. B. C. C. D. D.
Refer to the above diagram. Assume that G and T1 are the relevant curves, the economy is currently at B, and the full-employment GDP is A. This economy has a(n):
A. cyclically adjusted budget deficit. B. actual budget surplus. C. cyclically adjusted budget surplus. D. actual budget deficit.
Consumption spending is $16 million, planned investment spending is $4 million, unplanned investment spending is $2 million, government purchases are $6 million, and net export spending is $1 million. What is aggregate expenditure?
What will be an ideal response?