After 1616, Virginia shifted more and more scarce resources out of food production and into tobacco production. Hence, the economic cost of tobacco production included the sacrifice of food production

Find the tax multiplier if the MPC is 0.75

a. ?4. b. ?3. c. 0.33. d. 3. e. 4.

The horizontal short-run aggregate supply curve

A. assumes that wages and all other input prices are constant. B. assumes that opportunity cost is constant. C. assumes that there is full employment in the economy. D. shows that real GDP can be increased only when prices increase.