(Advanced analysis) Assume that the MPS is .33 in an economy that has an aggregate supply curve with a slope of 1. An increase in investment spending of $10 billion will shift the aggregate demand curve rightward by:
A. $30 billion and increase real GDP by $15 billion.
B. $30 billion and increase real GDP by $30 billion.
C. $10 billion and increase real GDP by $30 billion.
D. $10 billion and increase real GDP by $10 billion.
A. $30 billion and increase real GDP by $15 billion.
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a. labor force participation rate b. GDP deflator c. S&P 500 d. Consumer Price Index (CPI)
Which of the following was a Marxist prediction?
A. Standards of living would increase because of improved productivity and technological advance. B. There would be significant differentiation between workers and owners of factories. C. Production would move from large to ever-smaller factories. D. The use of business power would increase competition.
Adherents of the traditional monetary rule advocate that the:
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