If an increase in autonomous consumption spending of $25 million results in a $100 million increase in equilibrium real GDP, then
A) the MPC is 0.25. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 2.5.
B
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What will be an ideal response?
Suppose total benefits and total costs are given by B(Y) = 600Y ? 12Y2 and C(Y) = 20Y2. What is the maximum level of net benefits?
A. 1916.4 B. 2,500.75 C. 2,812.5 D. None of the statements associated with this question are correct.
If the price of product L increases, the demand curve for close-substitute product J will:
A. shift downward toward the horizontal axis. B. shift to the left. C. shift to the right. D. remain unchanged.
Refer to the information provided in Figure 1.5 below to answer the question(s) that follow.
Figure 1.5Refer to Figure 1.5. Which of the Panels shows a curve or line that has a slope that is positive and increasing?
A. A B. B C. C D. D