If the economy is in the expansion phase of a business cycle and investment increases, when the multiplier effect kicks in, the expansion
A) is not effected.
B) peaks.
C) picks up speed.
D) reverses.
E) slows down.
C
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John Maynard Keynes believed that a recession was caused entirely by
A. inadequate aggregate supply. B. inadequate aggregate demand. C. too much inflation. D. too much government intervention.
The free rider problem suggests that a producer will tend to:
a. produce more than the optimal quantity of a public good b. produce less than the optimal quantity of a public good. c. produce the optimal quantity of a public good if it is funded out of tax revenue. d. do none of the above.
The burden of a tax is placed entirely on the buyers of a good when the demand for the good is _____
a. perfectly inelastic b. perfectly elastic c. unit elastic d. relatively elastic
Which of the following statements is true?
A) Oil is classified as part of the resource category land. B) A person working for a company is classified as part of the resource category capital. C) A machine in a factory is classified as part of the resource category land. D) A person with the particular talent for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things is classified as part of the resource category labor. E) a and d