An increase in autonomous investment in an economy will _____
a. shift the aggregate expenditure line upward
b. shift the aggregate expenditure line downward
c. result in an upward movement along the aggregate expenditure line
d. result in a downward movement along the aggregate expenditure line
e. increase aggregate expenditures only at high levels of income
a
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Positive economics
What will be an ideal response?
Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. The cafe's economic profit is
A. break even. B. zero. C. positive. D. negative.