How can the multiplier help macroeconomic policymakers determine how much additional investment or government purchases are necessary to reach full employment?
What will be an ideal response?
If the gap between full-employment output and the forecaster output happens to be $90 billion, and the multiplier is 3, policymakers can calculate that only a $30 billion increase in investment and/or government spending is required for the economy to reach full employment.
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One requirement for an industry to be perfectly competitive is that in the industry there
A) are a few firms who control the market. B) are many firms for whom the efficient scale of production is small. C) is one firm that sells a product with no close substitutes. D) are many firms selling different products. E) is a barrier to entry that makes the entry of new firms difficult.
The purpose of antitrust laws is to:
a. reduce anticompetitive activities. b. regulate electric companies. c. guarantee worker safety. d. promote quality products.