Assume the marginal propensity to consume (MPC) is 0.80 and the government increases taxes by $100 billion. The aggregate demand curve will shift to the:
A. left by $80 billion.
B. right by $200 billion.
C. right by $400 billion.
D. left by $400 billion.
Answer: D
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According to the materials balance model
a. recycling permanently eliminates residuals b. only production can damage the environment c. residuals arise from both consumption and production d. only households undertake recycling and reuse
The labor supply curve:
A. shows the relationship between the total quantity of labor supplied by all firms in the economy and the wage rate. B. shows that, all things being equal, more workers will want to work when wages are higher and less will want to work when wages are lower. C. has a negative slope. D. All of these are true.
Which of the following would be considered an investment in human capital?
a. switching to working the night shift to receive a higher wage b. buying a new computer c. enrolling in a three-week course to learn more about a specific topic in your line of work d. quitting a job for health reasons.
Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. 
Figure 13.2 Refer to Figure 13.2. This firm's marginal revenue will be negative at
A. prices between $4 and $8. B. prices above $5. C. prices below $5. D. all prices.