The model predicts that a temporary increase in government purchases causes:
a. an increase in consumption.
b. a reduction in gross investment.
c. a reduction in real GDP.
d. all of the above.
Ans: b. a reduction in gross investment.
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John Amaker owns orange groves and hires pickers for a two-week period as shown in Table 7-3.Table 7-3 Pickers Oranges Picked 1 1,000 2 2,000 3 3,000 4 3,900 5 4,700 6 5,400 7 6,000 8 6,200 9 6,000 In Table 7-3, negative returns set in with picker
A. 6. B. 7. C. 8. D. 9. E. There are no negative returns in this table.
Refer to Figures b and c. In the figures above, the probability of sunny weather, state S, is higher in:
A. Figure b.
B. Figure c.
C. bundle C versus A in both figures.
D. bundle A versus C in both figures.
A market situation in which there are very few sellers is
A. perfect competition. B. monopolistic competition. C. oligopoly. D. monopoly.
In terms of the percentage of health expenditures spent by governments, single payer systems are
A. typically under 50%. B. more than 100%. C. by definition 100%. D. typically between 60% and 90%.