If the government increases its purchases of goods and services by $3,000 and the MPC is 0.8, GDP and income will eventually increase by
A) $2,400. B) $6,000. C) $15,000. D) $24,000.
C
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Based on the data in this table,
U ? ? period 1 6 1 4 period 2 8 0 3.2 period 3 8 2 4.4 If the natural rate of unemployment is steady at 7 percent, and, in period four, there is no price shock and unemployment is 8 percent, then the inflation rate in period 4 will be ________ percent. A) 4.4 B) 3.6 C) 3.4 D) 1.6 E) none of the above
An increase in demand occurs when
A) we measure price in money price rather than real price. B) we move up the demand curve. C) the demand curve shifts to the right. D) the demand curve shifts to the left.
Which is not a determinant of supply?
a. The existing state of technology used by the firm b. The level of government taxes and subsidies c. The cost of resources used in production d. The market price of the good
The argument that many critics of free trade have suggested that genetic engineering of plants and animals could lead to accidental production of new diseases is the
A) national security argument. B) infant industry argument. C) protecting domestic jobs argument. D) environmental and safety argument.