Assuming that Yd = $20,000 and C = $22,000, we would find that the average propensity to consume would be equal to

In the Keynesian cross diagram, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up, the equilibrium level of aggregate output to ________, and the IS curve to shift to the ________,

everything else held constant. A) rise; left B) rise; right C) fall; left D) fall; right

Suppose the Christmas trees market is perfectly competitive. An owner is currently earning a profit of $1,000, the cost of producing and selling an additional Christmas tree is $25, the current market price is $20. The owner

A) should sell more trees. B) should not sell more trees. C) should advertise in the market to promote his sales. D) is not maximizing his profits.