Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . A decrease in government spending of $1 billion would result in a decrease in GDP of:

In their relationship with stockholders, a firm's managers act

A) as agents. B) as principals. C) in loco parentis. D) as proprietors.

Which of the following scenarios illustrates the theory of rational expectations? a. Kyle decides to buy a plot of land near the new industrial hub of his city

b. Sheila decides to take up a job in a shoe store rather than studying further. c. Dean decides to look for new jobs when the economy is in recession. d. Kevin determines that the average miles per gallon on his last three car trips is 37.