The federal government buys $10 million worth of aircraft engines from General Motors. If the MPC is .80 what will be the impact on aggregate demand, other things being equal?
a. Aggregate demand will increase $8 million
b. Aggregate demand will increase $12.5 million.
c. Aggregate demand will increase $18 million.
d. Aggregate demand will increase $50 million.
d
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Consider the following:
(i) Silver is more abundant and easier to extract from some mines than from others. Is silver mining more likely to be a constant-cost or an increasing-cost industry? Justify your choice. (ii) Production of flags requires nylon, sewing machines, and unskilled labor. Is flag production more likely to be a constant-cost or an increasing-cost industry? Justify your choice. (iii) Farmers make up a significant proportion of the demand for arable land. Is farming more likely to be a constant-cost or an increasing-cost industry? Justify your choice.
Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) None of the above is correct.
The basic human tendency to overvalue recent experience when trying to predict the future is called:
A. tulip mania. B. the leverage effect. C. herd instinct. D. the recency effect.
the United States economy is operating at peak efficiency, it is on its ___________________________.
Fill in the blank(s) with the appropriate word(s).