The multiplier effect on real GDP occurs because
What will be an ideal response?
an autonomous change in expenditure causes an induced change in consumption expenditure.
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Workers earn more than half of the income generated by the production process
a. True b. False Indicate whether the statement is true or false
Which of the following is held constant when constructing a production possibilities curve?
A. the amount of total resources used B. combination of goods produced C. the price level D. all of these
Suppose a cereal firm, Nabisco, merges with both a wheat firm and milling firm. This is an example of a
A. vertical merger. B. parallel merger. C. diagonal merger. D. horizontal merger.
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $75 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should produce ________ personalized sweatshirts.
A. 0 B. 50 C. 70 D. 75