In the long run
A. all inputs are variable.
B. all intermediate goods are fixed.
C. only capital inputs are fixed.
D. all inputs are fixed.
Answer: A
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In colonial America, the average wage laborer
(a) received health care benefits, over-time pay and injury compensation. They also worked in safe and healthy environments. (b) achieved a standard of living significantly higher than those standards realized throughout the world. (c) possessed few labor rights, privileges and protections, while being denied the right to vote or organize. (d) had a higher standard of living than workers in Europe but lower health standards because of the rural, isolated conditions of colonial living.
Assume that full-employment national income is Y = $1,200 billion, the current equilibrium national income is Y = $800 billion, and the MPC is 0.5 . What level of aggregate expenditure will close the recessionary gap?
a. $50 billion b. $80 billion c. $140 billion d. $200 billion e. $400 billion