In a certain economy, when income is $400, consumer spending is $325 . The value of the multiplier for this economy is 3.33 . It follows that, when income is $450, consumer spending is

a. $360 . For this economy, an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand.
b. $360 . For this economy, an initial increase of $50 in consumer spending translates into a $166.50 increase in aggregate demand.
c. $341.67 . For this economy, an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand.
d. $341.67 . For this economy, an initial increase of $50 in consumer spending translates into a $166.25 increase in aggregate demand.


b

Economics

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The short-run aggregate supply curve would shift and the long-run aggregate supply curve would remain fixed if

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Economics

An individual's demand curve for a good is derived by

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Economics

In the table below, the capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. How much does the 50th unit of output add to the firm's total cost?

A. $400 B. $600 C. $10 D. $6.67 E. none of the above

Economics