In the United States, direct expenditures for governments between 1933 and 1943
A. Trended down for all governments.
B. Trended up for state and local governments and down for the federal government.
C. Trended up for all governments.
D. Trended down for state and local governments and up for the federal government.
Answer: D
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Figure 9-4
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In Figure 9-4, which expenditure level will result in a recessionary gap?
A. 1 B. 2 C. 3 D. There will be no deflationary gap.
In Corinthia, the marginal propensity to consume is 0.7, base consumption is $500, the tax rate is 20 percent of income, national income is $3,000 . investment spending is $1,000 . government spending is $1,000 . export earning is $2,000 . and import spending is $500 . When the real GDP of Corinthia is zero, its aggregate expenditure equals _____
a. $4,000 b. $7,500 c. $8,900 d. $10,000
The country of Bienmundo does not trade with any other country. Its GDP is $30 billion. Its government purchases $5 billion worth of goods and services each year and collects $6 billion in taxes. Private saving in Bienmundo amounts to $5 billion. What are consumption and investment in Bienmundo?
a. $17 billion and $8 billion, respectively. b. $19 billion and $6 billion, respectively. c. $19 billion and $8 billion, respectively. d. $17 billion and $6 billion, respectively.
Which of the following would not give workers some degree of monopoly power?
a) learning by doing b) labor unions c) highly specialized human capital d) high rates of short term unemployment e) high costs of job turnover and training incurred by employers