In Corinthia, the marginal propensity to consume is 0.7, base consumption is $500, the tax rate is 20 percent of income, national income is $3,000 . investment spending is $1,000 . government spending is $1,000 . export earning is $2,000 . and import spending is $500 . When the real GDP of Corinthia is zero, its aggregate expenditure equals _____

When a major car company lowers its prices, other car makers will probably

a. maintain existing prices. b. raise their prices. c. go out of business. d. lower their prices.

This table represents the revenues faced by a monopolist.PriceQuantity SoldTotal RevenueAverage RevenueMarginal Revenue$1,0001$1,000  $9002$1,800  $8003$2,400  $7004$2,800  $6005$3,000  $5006$3,000  $4007$2,800  Using the information in the table shown, the marginal revenue:

A. decreases, then increases after the 6th unit. B. increases, then decreases as output increases. C. increases as output increases. D. is negative after the 6th unit.