If the MPC is 0.8, and the government spends an additional $100b, the overall effect on GDP will be:
A. $400b.
B. $500b.
C. $120b.
D. $180b.
B. $500b.
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Which group opposed having lots of money in the economy after the Civil War and before World War I?
(a) Those individuals with debt (businesses) (b) Those buying and selling commodities (farmers) (c) Those providing credit through deposits and other venues (wealthy and savers) (d) Those benefitting from rising wages and prices
When a firm establishes a long-term contract with another firm that is characterized by common ownership of a supplier with another firm, it is referred to as a:
A. joint venture. B. franchise agreement. C. standard supply contract. D. lease contract.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Suppose the MPC in the economy in Figure 10.2 equals 0.75 and the shift from AD0 to AD1 was caused by a decrease in investment of $20 billion. What will the magnitude of the second decrease in aggregate demand be (for example, AD1 to AD2)?
A. $120 billion. B. $80 billion. C. $15 billion. D. $20 billion.