According to Baumol and Blinder, the real-world multiplier will be smaller than 1/(1 ? MPC) because the 1/(1 ? MPC) measure is based on
A. a model that ignores inflation associated with the expansion of income.
B. a model that adds taxes that tend to change as income changes.
C. a model that adds the effects of international trade.
D. a model that ignores the prices government faces
Answer: A
Economics
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According to the text, much of the increase in productivity that has occurred more recently in the fast food industry was the result of improvements in capital and technology
Indicate whether the statement is true or false
Economics
The smallest productivity gains from colonial shipping were from:
a. shorter layover times in ports. b. lower insurance rates. c. the increased speed of the ships. d. fewer wars.
Economics