Assume that Frantek Bass has an MPC equal to 0.80 . If he normally earns $50,000 per year, but is laid off for part of 2000 and only earns $30,000 . his saving for 2000 . according to Milton Friedman, will be

Refer to the above figure. Suppose the economy is operating at point A. There is a recessionary gap of ________, which can be closed by ________

A) $3 trillion; increasing government spending by $1 trillion B) $1 trillion; expansionary fiscal policy that shifts the short-run aggregate supply curve through point C C) $2 trillion; expansionary fiscal policy that generates another $2 trillion in total spending D) $2 trillion; an increase in government spending of $14 trillion

Many wines are priced high in order to

a. Indicate low quality b. Indicate high quality c. Indicate a bargain brand d. None of the above