If the MPC = 0.75, a decrease in personal taxes from $100 billion to $80 billion will increase real GDP by
A) $20 billion.
B) $40 billion.
C) $60 billion.
D) $80 billion.
C
You might also like to view...
Marginal cost is calculated as
A) total cost divided by output. B) the increase in total cost divided by the increase in output. C) the increase in total cost divided by the increase in labor, given the amount of capital. D) total cost minus total fixed cost.
One way to reduce exports is to
A) base trade on comparative advantage. B) base trade on opportunity costs. C) trade with poor countries. D) restrict imports.
If we compare income mobility in absolute terms, we would measure whether a person's income:
A. is higher than her parents' income. B. is higher at the end of her career compared to the beginning. C. places her higher up in the income distribution over the course of her work-life. D. places her higher up in the income distribution than her parents' income.
The question "Should children receive free lunch at school?" is an example of which fundamental economic question?
A. The What to Produce question. B. The Why to Produce question. C. The How to Produce question. D. The For Whom to Produce question.