Compared to a country with an MPC of 0.8, a country with an MPC of 0.6 would have to change government expenditures by ________ as much to have the same impact on real GDP.

Needs-tested spending is best described as

A) spending on programs that entitle qualified persons and businesses to receive benefits. B) spending on programs that have been tested in some manner. C) spending on programs that have proven over time to be sound investments. D) spending on programs that are considered necessities (needed) according to surveys of the public. E) not spending at all but a reference to the reliability of budget.

Which of the following would not shift the production possibilities frontier?

a. an increase in worker training b. a war that destroyed many buildings c. a technological improvement that improved fuel efficiency in cars d. a decrease in the size of the labor force e. a change to a more inefficient production process