When investment increases, the multiplier points out that
A) consumption decreases by a greater amount.
B) consumption increases by the same amount.
C) real GDP increases by a greater amount.
D) ultimately investment increases by more than the initial increase.
E) real GDP decreases by a greater amount.
C
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If the demand faced by a firm is elastic, selling one less unit of output will
a. increase revenue. b. decrease revenue. c. keep revenues constant. d. decrease price.
If the central bank increases the growth rate of the money supply and initially inflation expectations are unchanged, then in the short run
a. unemployment rises. In the long run the short-run Phillips curve shifts left. b. unemployment rises. In the long run the short-run Phillips curve shifts right. c. unemployment falls. In the long run the short-run the Phillips curve shifts left. d. unemployment falls. In the long run the short-run the Phillips curve shifts right.