In Figure 4-5 above, people would be trying to increase their holdings of money at

At the minimum efficient scale

A) all possible economies of scale have not been exhausted. B) marginal cost is at its minimum. C) the firm has achieved the lowest possible average cost of production. D) any increases in the scale of operation will encounter further economies of scale.

Given full-employment output = $2,800, equilibrium output = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of national output?

A. $300 decrease in taxes. B. $75 increase in government spending. C. $75 decrease in taxes. D. $300 increase in government spending.