Assume that we want to drive our economy out of recession by generating a $400 billion change in real GDP. The MPC is 0.80 . Which of the following policy prescriptions would generate the targeted $400 billion change in income?
a. $120 billion increase in government spending and $50 billion increase in tax revenue.
b. $140 billion increase in government spending and $70 billion increase in tax revenue.
c. $160 billion increase in government spending and $120 billion increase in tax revenue.
d. $220 billion increase in government spending and $100 billion increase in tax revenue.
e. $400 billion increase in government spending and $300 billion increase in tax revenue.
a
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Because of the rise of global competition and free trade,
a. antitrust policy serves no purpose b. antitrust policy may be less necessary than previously thought c. U.S. industrial concentration poses more of a threat to consumers d. U.S. markets are becoming less contestable e. U.S. manufacturers are seeking fewer trade barriers
Jordan wants to sell her wedding gown for $250, but her cousin Jessica offered her $375 for it. If the gown is sold for $375, what is Jordan's producer's surplus
a. $125 b. $25 c. $625 d. $373 e. $250