Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the additional amount spent on non-necessities should be:

The total of all planned expenditures in the entire economy is

A) aggregate supply. B) LRAS. C) aggregate demand. D) the open economy effect.

International trade is definitely in the social interest if

A) consumer surplus increases. B) producer surplus increases. C) consumer surplus does not decreases. D) producer surplus does not decreases. E) total surplus increases.