In the classical model, less consumption and more savings would
a. increase aggregate supply and output.
b. reduces aggregate demand and output..
c. decrease real interest rates and output.
d. cause the price level to rise with no effect on output.
e. have no effect on output or the price level.
A
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Induced expenditure includes
A) consumption expenditure, government expenditure on goods and services, and imports. B) investment, consumption expenditures, and exports. C) consumption expenditure and exports. D) consumption expenditure and government expenditure on goods and services. E) consumption expenditure and imports.
A firm is producing the profit-maximizing amount of output when it is producing where its ________ curve intersects its ________ curve
A) MC; MR B) MC; AVC C) MC; ATC D) MC; TR
Assume a subsidy to buyers has been enacted in the market in the graph shown. With the subsidy, the buyers buy ________ units and pay ________ for each of them.
A. 100; $46 B. 100; $30 C. 150; $24 D. 150; $40
Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. 
Figure 8.9
Refer to Figure 8.9. This farmer's profit-maximizing level of output is ________ units of output.
A. 100 B. 350 C. 500 D. 700