Businesses in the United States cut their investment projects by $30 billion. If the MPC is 2, what will be the impact on the national income (Y)?
A. Y will fall by $15 billion.
B. Y will fall by $30 billion.
C. Y will fall by $60 billion.
D. Y will fall by $120 billion.
Answer: C
Economics
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Figure 4-21
A surplus will tend to occur at which price in Figure 4-21?
a.
P1
b.
P2
c.
P3
Economics
The effect on short-run equilibrium output of a one-unit increase in autonomous expenditure is called:
A. Okun's law. B. average labor productivity. C. the income-expenditure multiplier. D. the marginal propensity to consume.
Economics