In the Keynesian model, an increase in real autonomous spending results in a greater increase in real Gross Domestic Product (GDP) if
A. the average propensity to save (APS) is lower.
B. the average propensity to save (APS) is higher.
C. the marginal propensity to consume (MPC) is lower.
D. the marginal propensity to consume (MPC) is higher.
Answer: D
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An economics professor points to a student in the front row and announces that "sitting in class is the thing you value most during this time period." Is the professor correct? Why or why not?
An industry with a large number of small firms producing a standardized product in a market with easy entry and exit of firms is:
What will be an ideal response?
The price elasticity of demand for a good is relatively elastic if:
A. there are a large number of substitutes. B. the consumer has more time to make decisions about purchasing the good. C. the good is less of a necessity. D. All of these
Note: Amounts in billions.Refer to the above table. The equilibrium real GDP is
A. $14 billion. B. $13 billion. C. $12 billion. D. $15 billion.