Andrea Burris lost her job in a company layoff 5 months ago. She would take a job if one was offered, but she has given up looking for work until the economy improves. She is:
a. a member of the civilian labor force who is employed.
b. a member of the civilian labor force who is unemployed.
c. a member of the civilian labor force who is underemployed.
d. a discouraged worker who is not a member of the labor force.
e. now structurally unemployable.
Question 2
If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by 400 million, then by how much would government spending have to change to generate this increase in real GDP?
a. 140 million.
b. 100 million.
c. 200 million.
d. 400 million.
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