If an economy saves 20 percent of any increase in real Gross Domestic Product (GDP), then an increase in investment of $2 billion can produce an increase in real Gross Domestic Product (GDP) of as much as

Indirectly, the government has improved the quality of information available to consumers through

a. the SEC. b. its support for the Internet. c. the Federal Reserve System. d. requiring content labels on food products.

Refer to the above figure. We are currently producing at point c. Which of the following statements is TRUE?

A) Resources are not being efficiently utilized. B) Resources are being efficiently utilized. C) The only way to produce more of Goods X or Y is to have an increase in the amount of resources. D) The Law of Increasing Additional Cost does not hold.