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18.
According to the multiplier effect, an initial decrease in the
government purchases decrease the real GDP by initial decrease in
government purchases.
19.
In an economy, the working age population is 300 million of
this total;
240 million workers are employed
9 million workers are unemployed
42 million workers are not available for work (homemakers, full
time students, etc)
6 million workers are available for work, but are discourage, and
thus are not seeking work
3 million workers are available for work but are not currently
seeking work due to transportation and child care problems.
The unemployment rate in this economy
20.
Suppose you deposit $1,000 cash into your checking account,
By how much will checking deposits in the banking system
increase as a result when the required reserve ratio is 0.40%
The change in checking deposit is equal
21.
Suppose the government increases expenditures by $110
billion and the marginal propensity to consume is 0.80 . By how
will equilibrium GDP change?
The change in equilibrium GDP