If the MPS equals 0.25 and the MPI is 0.15, then an initial change in investment spending of $250 million will result in a total change in equilibrium real GDP of $625 million
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
What would happen if a perfectly competitive firm decided to raise its prices by 1%?
a. The firm would increase revenues by 1%. b. The firm would increase market share by 1%. c. The firm would lose all of its market to its competitors. d. The firm would put all of its competitors out of business.
The optimum resource mix for a firm would be
A. wage rate/rent = MRP of labor/MRP of land. B. wage rate × rent = MRP of labor × MRP of land. C. MRP of labor/wage rate = MRP of land/rent. D. None of these choices are correct.
Which of the following is NOT an example of a good with network economies?
A. A computer printer B. Internet service C. Facebook D. A cell phone