In an Open economy leakage to imports ____________ the value of the multiplier ?
A. reduce
B. increase
C. do not change
D. None of the above
The National Economy
The total multiplier for the economy will reflect ?
The total multiplier for the economy will reflect ?
A. MPC and MPT
B. MPT and MPZ
C. MPC and MPZ
D. MPC, MPT and MPZ
For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?
For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?
A. booms, booms
B. recession, recession
C. booms, recessions
D. recessions, booms
If the government increases spending and raises taxes by just enough to finance this increase it will ?
If the government increases spending and raises taxes by just enough to finance this increase it will ?
A. leave output unchanged
B. increase output
C. reduce output
D. increase the MPC
If a result of households wish to save more there is a change in equilibrium income and no change in equilibrium saving this is an example of ?
If a result of households wish to save more there is a change in equilibrium income and no change in equilibrium saving this is an example of ?
A. market imperfection
B. the law of diminishing returns
C. the paradox of thrift
D. market failure
The multiplier is calculated as___________?
The multiplier is calculated as___________?
A. 1(1-MPC)
B. 1/MPS
C. 1/MPC
D. a or b
When investment is assumed to autonomous the slope of the AD schedule is determined by the ?
When investment is assumed to autonomous the slope of the AD schedule is determined by the ?
A. marginal propensity to invest
B. disposable incomes
C. marginal propensity to consume
D. average propensity to consume
Short-run equilibrium output means that aggregate demand __________ actual output?
Short-run equilibrium output means that aggregate demand __________ actual output?
A. is less than
B. equals
C. is greater than
D. fluctuates around
When we refer to the hidden economy we mean unrecorded income owing to ?
When we refer to the hidden economy we mean unrecorded income owing to ?
A. tax evasion
B. poor statistics
C. the lags between statistical collection and publication
D. smuggling
Real GNP measures income ?
Real GNP measures income ?
A. including non-market activities
B. adjusted for inflation
C. including externalities
D. including tax evasion