Foreign direct investment generally leads to technological advancements in poorer countries

The equilibrium level of real GDP is $5,000 billion, the full employment level of real GDP is $6,000 . and the marginal propensity to consume (MPC) is 0.90 . Which of the following statements is true?

a. A recessionary gap exists equal to $100 billion. b. The full employment target could be reached if government increased its spending by $100 billion. c. Both of the above statements are true. d. Neither of the above statements are true.

For a profit-maximizing competitive firm, the value of marginal product curve is

a. always rising. b. falling only when marginal product is rising. c. the labor supply curve. d. the labor demand curve.