An increase in disposable income will shift the aggregate demand curve to the right

Refer to Figure 8A.1. When the economy reaches K, total saving is represented by point ________ and depreciation is represented by point ________

A) Y; e B) Y; Y C) e; e D) e; Y

Politicians have often kissed babies to improve their re-election prospects. A rational politician will kiss babies as long as

A) the public is impressed. B) the marginal benefits exceed the marginal costs. C) there is a camera crew to document the activity. D) the babies are cute.