Econ 1020 Practice Questions

6 what is the long run expenditure multiplier a 00 b

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Unformatted text preview: , what is the long-run expenditure multiplier? a. 0.0 b. 2.0 c. 2.5 d. 10.0 e. 1.0 ____ 34. Renee plans to graduate and enter the job market in the spring. Economists are forecasting a recession during the spring. As a result, she a. is happy because unemployment rates are low during a recession b. is happy because salaries are usually higher during a recession c. does not care because the availability of jobs is not affected by whether there is a recession d. is unhappy because it is generally difficult to find a job during a recession e. favors increasing taxes to help head off the recession ____ 35. The reason the short-run macro model suggests that the economy can operate either above or below its potential while in the long-run classical model the economy operates automatically at full employment is that...
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