Author Question: Adam Smith believed that the goal of economic activity is to amass wealth in the form of gold, and ... (Read 147 times)

Kikoku · **on:** Jun 30, 2018

Adam Smith believed that the goal of economic activity is to amass wealth in the form of gold, and that this could best be accomplished through government carefully using tariffs and quotas to fashion favorable terms of trade with its trading partners.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Assume the economy is in recession, the MPC is 0.80, and an increase of 200 billion in spending is needed in order to reach full employment. The target can be reached if government spending is increased by:
a. 20 billion.
b. 200 billion.
c. 80 billion.
d. 40 billion.