If households save $0.40 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be

Refer to the above table. The equilibrium real GDP is

A) $14 billion. B) $12 billion. C) $15 billion. D) $13 billion.

By offering more generous unemployment insurance programs, European countries can expect

A) workers to gain new skills quickly in response to fluctuations in the labor market. B) longer periods of unemployment for their workers. C) to pay less in taxes than in the United States. D) shorter periods of unemployment for their workers.