In general, countries export products they can produce more cheaply in return for products that are unavailable domestically or are cheaper elsewhere

In the recent Global Economic Crisis, all of the following are causes that pushed the IS curve to the left EXCEPT

A) the negative wealth effect from the collapse of the housing bubble. B) the end of cash-out mortgage refinancing. C) growing unwillingness of banks and nonbank financial institutions to grant loan. D) slow and minimal response of the U.S. government.

If the marginal propensity to consume (MPC) is 0.75, a $50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:

a. increase by $50. b. decrease by $50. c. increase by $200. d. decrease by $200.