The change in national income that is generated by a change in aggregate expenditure is called
a. autonomous consumption
b. marginal propensity to consume
c. equilibrium multiplier
d. aggregate expenditure multiplier
e. income multiplier
E
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Governments should promote education because education contributes to the nation's
A) free markets. B) international trade. C) economic growth potential. D) employment. E) protection of property rights.
The Fed accidentally discovered open market operations in the early
A) 1920s. B) 1910s. C) 1900s. D) 1890s.
If in a given market of more than one producer, there were to exist for a long interval of time a positive gap between price and average cost (P > AC), this would suggest that
a. there are many sellers in the industry. b. there exists an oligopoly or cartel in the industry. c. this is a contestable market. d. the firm cannot be a monopolistic competitor.
The key to increasing economic growth is to ____
a. increase tax rates b. increase labor productivity c. increase inflation d. increase population growth e. increase the level of federal govt spending