If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $500 billion, then
A) an increase in autonomous real consumption spending of $500 billion will generate this change.
B) a decrease in autonomous real saving of $500 billion will generate this change.
C) an increase in planned real investment spending of $200 billion will generate this change.
D) an increase in real autonomous spending of $100 billion will generate this change.
D
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There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There were about 70,000 people on the waiting list to buy season tickets in 2010
Packers tickets are a normal good. As a result of the economic recession in 2010 during which people's incomes decreased, the A) demand for Packers tickets decreased. B) demand curve for Packers tickets shifted rightward. C) quantity demanded of Packers tickets decreased. D) substitution effect changed the quantity demanded.
Normative economics deals with ____ and positive economics deals with ____.
A. what should be; what is B. fiction; fact C. microeconomics; macroeconomics D. negative aspects; positive aspects
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
We know that monopolistically competitive firms prevent the efficient use of resources because they produce where
A. P > ATC. B. MR > P. C. P > MC. D. P = MC.