Suppose the government increases unemployment benefits, which are paid for with higher taxes on earnings. If the marginal propensity to consume is the same for both the beneficiaries of the unemployment benefits and the workers paying taxes, _____.
a. GDP will first increase and then fall.
b. There will be no change in real GDP.
c. Real GDP will increase substantially.
d. Real GDP will fall
substantially.
e. GDP will first fall and then increase.
b
Economics
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The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $6 and the price of a unit of capital is $30, then the economically efficient technique is
A) W. B) X. C) Y. D) Z.
Economics
Oligopolistic industries are characterized by a few dominant firms.
Answer the following statement true (T) or false (F)
Economics