The profit-maximizing employment level for a monopsonist occurs where

Refer to Figure 8A.1. Suppose that the economy starts with a capital stock of K0. Then total saving is given by point ________ and depreciation by point ________

A) c; d B) b; a C) d; c D) a; b

Suppose the MPC is 0.9 . There are no crowding out or investment accelerator effects. If the government increases its expenditures by $30 billion, then by how much does aggregate demand shift to the right? If the government decreases taxes by $30 billion, then by how far does aggregate demand shift to the right?

a. $283 billion and $254.7 billion b. $283 billion and $283 billion c. $300 billion and $270 billion d. $300 billion and $300 billion