In the long run
a. all inputs are fixed.
b. all inputs are variable.
c. some inputs are fixed.
d. production levels never change.
b
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The economy is in a recession. The government enacts a policy to increase purchases by $2 billion. The MPC is 0.8. What would be the full increase in real GDP from the change in government purchases at a given price level?
A. $16 billion B. $10 billion C. $6 billion D. $8 billion
A sales tax on sellers of a good shifts the supply curve leftward because the tax is like a cost of production
Indicate whether the statement is true or false
Leisure is
a. subject to the law of diminishing marginal utility b. usually considered an inferior good c. a complementary good with nonmarket work d. a complementary good with market work e. an irrational way to spend valuable time
If the business taxes decreased for a firm, then we might expect investment spending to: A. increase.
A. increase. B. decrease. C. remain constant. D. there is not enough information to determine what would happen.