In the long run, an increase in productivity would cause output to ________ and the aggregate price level to ________.

Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:

a. MPC ? 1. b. (MPC ?1) / MPC. c. 1 / MPC. d. 1 / (1 ? MPC).

Suppose that a large dairy farmer is able to raise the market price of milk by withholding milk supply from the market. In this instance,

a. the milk market is perfectly competitive b. buyers will decrease their demand for milk c. buyers will increase their demand for milk d. the milk market is imperfectly competitive e. the milk market will collapse in the long run