If the marginal propensity to consume in a country is 0.6, then a $5,000 increase in transfer payments will lead to a _____ in real GDP

In the above figure, the total producer surplus at the efficient level of output is ________

A) $4.5 million B) $9.0 million C) $2.5 million D) $3.0 million

Answer the following statements true (T) or false (F)

1. The period known as the "Industrial Revolution" began in the United States in the late 1800's. 2. Citizens living in the richest nations today have material standards of living that are on average more than 50 times higher than people living in the poorest countries. 3. Savings are generated when current consumption is less than current output. 4. Buying 100 shares of Google stock would be an example of economic investment 5. Economists use the word investment to refer to the purchase of assets such as stocks, bonds, and real estate.