In Figure 32.1, at the market equilibrium price-quantity combination, the total variable cost to producers is 

A. 0HGQD.
B. 0HCQ*.
C. 0ABQD.
D. 0HEQS.

Answer: B

Economics

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Indicate whether the statement is true or false

Economics

If no fiscal policy changes are implemented to fight inflation, suppose the aggregate demand curve will exceed the current aggregate demand curve by $900 billion at any level of prices. Assuming the marginal propensity to consume is 0.90, this increase in aggregate demand could be prevented by:

A. increasing government spending by $500 billion. B. increasing government spending by $140 billion. C. decreasing taxes by $40 billion. D. increasing taxes by $100 billion.

Economics