Refer to the information provided in Figure 26.8 below to answer the question(s) that follow. Figure 26.8Refer to Figure 26.8. If the economy is at Point A currently producing Y0 and the Z factors decrease, the economy will move to Point ________ in the short run and to Point ________ in the long run.

At the XYZ Co, a unit of capital costs 3 times as much as a unit of labor. If the isoquants are convex, and the firm does not change its input mix in the long run, we can conclude that

A) MPK = 3 ? MPL. B) the firm will not hire any capital. C) the firm will hire 3 times as much labor as capital. D) the firm will hire 3 times as much capital as labor.

If Y = $500 billion, autonomous consumption = $300 billion, and the marginal propensity to save = 0.20, then saving will equal

a. –$200 billion b. $200 billion c. –$100 billion d. $100 billion e. $40 billion