If the multiplier is 4, a decrease in spending equal to $80 billion will be accompanied by a decrease in GDP of

The above figure shows a consumption function and a 45-degree line. Real consumption is a function of disposable income

Why is real GDP used here instead? What is measured along the vertical axis? What is measured by point B? Explain the significance of point A.

Marginal cost is defined as the increase in total cost resulting from an increase in:

a. one unit of output. b. output of 100 units. c. a firm's plant size. d. one unit of labor.