Ceteris paribus, if the government transfers income from individuals with a high MPC to those with a low MPC, in the short run, spending and output will:

A concentration ratio gives

A) the average size of the firms in an industry. B) the total sales of four or eight of the mid-sized firms in the industry. C) the percentage of all sales contributed by the four or eight largest firms in the industry. D) the sales of the four largest firms in the industry divided by the sales of the eight largest firms in the industry.

The classical model assumes that

A. people have money illusion. B. wages and prices are flexible. C. wages are flexible but prices are not. D. imperfect competition predominates in most markets.