To achieve a $500 billion increase in AD, if the MPC is 0.8, what increase in government purchases would be called for?
a. $625 billion
b. $500 billion
c. $400 billion
d. $100 billion
d
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A firm's total product curve shows
A) that inefficiency is not possible. B) how the cost of the fixed resources change when output changes. C) how the amount of output changes when the quantity of labor changes. D) that in the long run the firm must adjust the quantity of all the resources it employs.
A Lorenz curve shows the:
a. number of people in an economy living below the poverty line. b. percentage of children in an economy who are not receiving adequate nutrition. c. percentage of the economy's population benefiting from government spending programs. d. percentage of an economy's total income each part of the population receives. e. percentage of the population whose income is dependent on sales to foreign countries.