The oversimplified multiplier formula assumes that the
a. level of consumption spending is fixed.
b. price level is fixed.
c. government spending is fixed.
d. net exports depend on income.
b
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Profit is the return to entrepreneurship.
Answer the following statement true (T) or false (F)
The Coase solution to the externality problem only works when bargaining costs are high
a. True b. False
A general rule is that an economy is experiencing a recession when
A. real GDP declines for at least three months. B. real GDP declines for at least nine months. C. nominal GDP declines for at least nine months. D. real GDP declines for at least six months.
Which of the following shifts short-run aggregate supply right?
a. an increase in the minimum wage b. an increase in immigration from abroad c. an increase in the price of oil d. an increase in the actual price level