When national income increases from $300 billion to $400 billion, national consumption increases from $300 billion to $360 billion. At Y = $400 billion, the MPC is

If price-taking firms are required to install wet scrubbers on their chimneys to meet EPA regulations and their costs increase as a result, we would expect

a. demand for the product to fall b. the market supply curve to shift to the left c. the long-run economic profit of individual firms in the industry to fall d. the short-run economic profit of individual firms in the industry to remain unchanged e. short-run profits to rise as the industry raises price more than the cost of pollution

The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:

a. horizontal at the full-employment level of real GDP. b. positively sloped at the full-employment level of real GDP. c. vertical at the full-employment level of real GDP. d. backward bending at the full-employment level of real GDP.