In the simple Keynesian model, if the equilibrium level of income is $300 billion, the MPC is 0.75, and government expenditures increase by 20 billion. What is the new equilibrium level of income?

Which of the following statements about straight-line demand curves is true?

a. The price elasticity of demand becomes larger in absolute value as price falls. b. The price elasticity of demand becomes smaller in absolute value as price falls. c. The price elasticity of demand is constant along the curve. d. The price elasticity of demand and the slope of the demand curve are the same. e. Demand is price elastic everywhere along the curve.

A game in which any gains within the group are exactly offset by equal losses by the end of the game is a

A) positive-sum game. B) zero-sum game. C) strategy. D) negative-sum game.