Assume the MPC is 0.8 . Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shift the aggregate demand curve to the
a. left by $180 billion.
b. left by $500 billion.
c. right by $180 billion.
d. right by $400 billion.
b
Economics
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If a country has lower overall productivity levels than its trading partners, then it will
A) be unable to export. B) have a trade deficit. C) not be able to obtain gains from trade. D) have a lower standard of living than its trading partners. E) All of the above.
Economics
As concentration in an industry increases, the Herfindahl index falls
a. True b. False
Economics