Following Keynesian economics, and assuming a marginal propensity to consume (MPC) of 0.75, an increase in federal government spending of $100 billion at below full employment would be expected to shift the aggregate demand curve by $300 billion to the right
a. True
b. False
Indicate whether the statement is true or false
False
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If the elasticity measure equals 0.6, then the demand is
A) elastic. B) unit elastic. C) inelastic. D) infinitely elastic.
A worker's marginal revenue product depends upon his average product
a. True b. False Indicate whether the statement is true or false
Curly just graduated from State U and has three job offers: teaching at a prestigious private high school nine months a year with summers off, working forty hours a week at a bank in a small city, and working more than sixty hours a week for a high-powered investment firm in New York. Suppose all of the jobs paid exactly the same annual salary, and that most people prefer leisure to work, all else equal. If that were the case:
A. people would naturally sort themselves into the job that best suits their talents. B. there would be a surplus of workers at the investment firm. C. there would be a surplus of teachers at the high school. D. there would be a shortage of teachers at the high school.
The services of real estate brokers are provided in a competitive market. If the state Board of Realtors enacts several requirements that limit the number of real estate brokers, then consumer surplus will most likely
A) increase. B) decrease. C) remain unchanged. D) There is not enough information to answer.