If the value of the government multiplier is 1.5, which of the following is likely to be true if all other variables remain unchanged?
A) A $1 increase in government expenditure reduces gross domestic product by $1.50.
B) A $1.50 increase in government expenditure increases gross domestic product by $1.50.
C) A $1.50 increase in government expenditure reduces gross domestic product by $1.50.
D) A $1 increase in government expenditure increases gross domestic product by $1.50.
D
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Unemployment compensation is an example of
A) a subsidized service. B) a regressive income program. C) a Social Security benefit. D) an income maintenance program.
Use the following table to answer questions a-c
Output (Q): 0 1 2 3 4 5 6 Total Cost (TC): $36 $45 $52 $61 $74 $91 $110 a. What is the average fixed cost of producing 4 units of output? b. What is the marginal cost of producing the third unit of output? c. At what level of output does the firm encounter diminishing marginal returns? How do you know?