If equilibrium GDP is $1 trillion greater than full employment GDP, and there is an inflationary gap of $250 billion, the multiplier is
A. zero.
B. 1.
C. 2.5.
D. 4.
D. 4.
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Refer to Figure 2-9. What is the opportunity cost of producing 1 snow cone in Greenland?
A) 2/3 of a popsicle B) 5/6 of a popsicle C) 1 1/5 popsicles D) 200 popsicles
Many economists believe that when the federal government establishes an agency to regulate a particular industry, the regulated firms try to influence the agency even if these actions do not benefit the public
Economists refer to this result of government regulation by which of the following terms? A) special-interest regulation B) regulatory capture C) the regulatory paradox D) logrolling
Which of the following statements is true about the Medicaid program?
a. Eligibility standards are uniform across states. b. The program is totally funded by federal tax revenues. c. Everyone in the poverty-level population is eligible for benefits. d. About 20% of total outlays are for nursing home and home health care for the elderly. e. All of the above are true.
If the price elasticity of demand within the price range $1 and $1.25 for carrots is 0.79 and for radishes is 1.6, then, within that price range
a. carrots are more price elastic than radishes b. radishes are more price elastic than carrots c. carrots and radishes must be substitute goods d. carrots and radishes must be complementary goods e. both carrots and radishes are price elastic