The greater the MPC:
a. the greater the fraction of an increase in AD due to an increase in government purchases that is consumption.
b. the smaller the fraction of an increase in AD due to an increase in government purchases that is consumption.
c. the greater the change in government purchases required to achieve a given change in AD

Using the information in the table shown, the rate of inflation from 2008 to 2009 was:

A. 12.5 %.
B. 11.1 %.
C. 13 %.
D. 17 %.

Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:

A. excess supply will lead the price of broccoli to fall B. excess demand will lead the price of broccoli to fall C. excess demand will lead the price of broccoli to rise D. excess supply will lead the price of broccoli to rise