"A rise in government expenditures raised output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________

Other things being constant, if the marginal propensity to save (MPS) is 0.1, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP)

A) increases by $1 billion. B) increases by $90 million. C) decreases by $1 billion. D) decreases by $10 million.

Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3

50 and total fixed costs equal $1250. Based on this information, should this firm continue to operate in the short run? Why or why not?