If equilibrium real GDP rises from $4 trillion to $6 trillion when government purchases increase by $1 trillion, the MPC must be
a. 0.8
b. 0.4
c. 0.5
d. 0.2
e. 2
C
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The Bureau of Labor Statistics (BLS) compiles information about employment by
A) performing a census of every household in the nation. B) performing a quarterly survey 6,000,000 households. C) performing a monthly survey of 60,000 households. D) determining the average estimate of labor market specialists around the nation. E) contacting each of the 50 states' Departments of Labor.
A booming economy can make investors:
A. wary of future downturns, and shift the supply curve for loanable funds to the left. B. eager to borrow money, and shift the demand curve for loanable funds to the right. C. eager to borrow money, and shift the supply curve for loanable funds to the right. D. wary of future downturns, and shift the demand curve for loanable funds to the left.
Suppose the price of banana rises over time and consumers respond by buying fewer bananas. This situation contributes to which bias in the consumer price index?
A. substitution bias B. transportation bias C. quality bias D. indexing bias
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.