The mulitplier effect occurs because

Assignment Help Microeconomics
Reference no: EM13245909

1. At equilibruim GDP:
a. savings = investment, but aggregate demand does not equal aggregate supply.
b. savings = investment, and aggregate demand = aggregate supply.
c. savings does not equal investment,and aggregate demand does not equal aggregate supply.
d. savings does not equal investment, but aggregate demand = aggregate supply.

2. Each of the following supports the classical theory of employment EXCEPT:
a. say's law.
b. wage-price flexibility.
c. the interest mechanism.
d. government spending programs.

3. An illustration of the term "automatic stablizer: is provided by:
a. the tendency of tax collections to rise as the economy moves into a recession.
b. the tendency of tax collections fall as the economy moves into a recession.
c. increases in tax rates as the economy moves into a recession.

4. The mulitplier effect occurs because:
a. as savings level increase, a greater pool of loanable funds is available for investment spending by business.
b. increases in income cause a chain reaction of spending by many business and individuals.
c. increases in income cause tax revenues to increase, thereby stimulating increases in government spending levels.
d. business copy the spending decisions of their competitors.

5. Which of the following is NOT an example of a fiscal policy lag?
a. decision.
b. monetary.
c. impact.
d. deficit. 

Reference no: EM13245909

Questions Cloud

Determine the return and risk associated with the purchase : A new machine will cost $25,000. The machine is expected to last 4 years and has no salvage value. If the interest rate is 12%, determine the return and risk associated with the purchase. Probability 0.3 0.4 0.3 Annual Savings $7000 $8500 $9500
Should economic tigers be feared or tamed : In your opinion, should economic tigers be feared or tamed?
Calculate the tax revenue in the post-tax equilibrium : Suppose the market for cigarettes is characterized by the following information: Qd = 70 - 5P [Demand] Qs = 3P - 10 [Supply] Suppose the government imposes a sales tax of $2 per unit.
The marginal cost curve intersects the average total cost : When price exceeds marginal cost, a profit-maximizing firm will decrease production.The marginal cost curve intersects the average total cost curve at the break-even point
The mulitplier effect occurs because : As increases in income cause a chain reaction of spending by many business and individuals.
What is the marginal revenue product for the 4th worker : Suppose a car wash firm that has 3 workers is able to wash 120 cars per day. When it adds one more worker, it is able to wash 152 cars per day in total. Suppose each car wash costs $15. Then the marginal revenue product for the 4th worker is
What is its kinetic energy in ev : Find the closest distance an alpha particle of kinetic energy 5.0MeV can approach a bare gold nucleus, What is its kinetic energy in eV when it is expelled to infinity
What score should be used for the two cutoffs : They also send the upper 2.5% directly to the company without an interview. Based on the data the assumption of a bell-shaped distribution, what score should be used for the two cutoffs?
What internet business model would be appropriate : Prepare functional specifications for the company's use of the Web and the Internet. Include links to and from other sites in your design.

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the effect of an increase in the quantity of money

What is the effect of an increase in the quantity of money What is the difference between real variables and nominal variables Are these variables affected by the quantity of money If so, how Use examples from the text, the South University Online..

  Computing breakeven point and profits

The fixed costs at Harley Motors are $1 million annually. The main product has revenue of $8.50 per unit and $4.25 variable cost. Find out the following.

  Computing the real interest rate

If the dollar appreciated in real terms against the euro by 2 percent in a year, and in same year, inflation rates in the U.S. and the euro zone were 3 percent and 1 percent,

  Define several ways in which greater educational opportunity

In developing nations, young women have lower enrollment rates in secondary school than do young men. Describe several ways in which greater educational opportunities for young women could lead to faster economic growth in these countries.

  How does the amount of unemployment created

How does the amount of unemployment created by an increase in the minimum wage depend on the elasticity of labor demand Do you think an increase in the minimum wage will have a greater unemployment effect in the fast-food industry

  Which curve in the labor market for meat packers

What sectors of the labor market are forecast to be the strongest in your region- locality What advice would you give young workers who are preparing to enter the workforce in a few years

  Macroeconomics factors

During the job interview, the Vice President understood that you had received rigorous training in managerial economics, and you were able to choose some appropriate methods to predict the market movement.

  What government policy response would you recommend

1. Suppose the government imposes a tariff on all imports. Use the DD-AA model to an- alyze the effects this measure would have on the economy. Analyze both temporary and permanent tariffs. 2-Suppose there is a permanent fall in private aggregate ..

  Would the burden off the consumers cause a greater increase

IT would place more of a burden on the producers in the short run as frictional unemployment would result, but it would also take a heavy burden off the consumers purchasing the rice. would the frictional unemployment cause the net welfare to decre..

  Important aspect of monopolistic competition and oligopoly

Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..

  What is the optimal effluent fee

What is the optimal effluent fee? b. If the cost of pollution control falls by $1 billion at each level of pollution, does this alter your answer to part (a)?

  The causes of inflation

Which is the considered a cause of inflation. Producers raise prices to meet higher costs,There is not enough money in the economy or else.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd