Imagine that the government increases its spending by $75 billion. Which of the following by itself would tend to make the change in aggregate demand different from $75 billion?
a. both the multiplier effect and the crowding-out effect
b. the multiplier effect, but not the crowding-out effect
c. the crowding-out effect, but not the multiplier effect
d. neither the crowding out effect nor the multiplier effect
a
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Which of the following statements is true?
A) If the nominal wage rate increases, the opportunity cost of current consumption decreases. B) If the unemployment rate increases, the opportunity cost of current consumption decreases. C) If the real interest rate increases, the opportunity cost of current consumption increases. D) If the real wage rate increases, the opportunity cost of current consumption decreases.
The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake
According to the Coase Theorem, if the transactions costs are low and there are only a few people involved, the output will equal ________ tons of paper if ________ own the lake. A) 3; only the lakeside residents B) 3; either the firms or lakeside residents C) 4; the firms D) 4; either the firms or lakeside residents