If MPC = 0.75, a $40 billion decrease in government purchases would have what size effect on the "first round" of induced added consumption?

An outward shift of the production possibilities curve represents

A) economic contraction. B) economic growth. C) economic recession. D) economic inflation.

Which of the following statements is correct?

A) Average variable costs always exceed average total costs. B) Average fixed costs are constant. C) Average variable cost reaches its minimum when average product equals its maximum. D) Average fixed costs are always less than average variable costs.