The multiplier is calculated as the
A) change in autonomous expenditure/ change in real GDP.
B) change in real GDP/ change in induced spending.
C) change in real GDP/ change in autonomous expenditure.
D) change in nominal GDP/ change in autonomous expenditure.
C
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A payroll tax is also known as a(n) ________ tax
A) excise tax B) corporate income tax C) personal income tax D) social insurance tax
A firm in a monopolistically competitive market determines the profit-maximizing output at which
A. MR = AVC. B. MR = ATC. C. MR = MC. D. MR = P.
Market equilibrium
i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity. A) ii only B) iii only C) ii and iii D) i only E) i and ii
When an economy experiences deflation, investment will:
A. increase, because businesses will spend cash instead of borrowing it. B. increase, because businesses will take out loans that will increase in value. C. decrease, because businesses will spend cash instead of borrowing it. D. decrease, because businesses will not take out loans that will increase in value over time.