Assume that the MPC is 0.9 and investment falls by $30 billion. What is the change in real GDP?

Refer to Figure 15-13. From the monopoly graph above, identify the area representing the deadweight loss

Would the deadweight loss be larger if the demand curve was more elastic or less elastic? What will be an ideal response?

Refer to Figure 24-1. Ceteris paribus, an increase in the price level would be represented by a movement from

A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.