A temporary decrease in government purchases causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium

Refer to Figure 4-1. Arnold's marginal benefit from consuming the third burrito is

A) $1.25. B) $1.50. C) $2.50. D) $6.00.

According to most economists, the development of markets is:

A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.