Most of the growth in living standards over the last ten years can be attributed to growth in labor force participation

Explain how the economy moves back to full employment from recession. Be sure to detail what happens to short-run aggregate supply, unemployment, equilibrium GDP and the price level

What will be an ideal response?

Assume General Motors has decided to build an assembly plant in St. Louis. The plant will employ 1,000 full-time workers at an annual wage of $40,000 each. If the marginal propensity to consume in St. Louis is 2/3, what change in income will result from operation of the plant for one year?

a. $26.7 million. b. $40 million. c. $80 million. d. $120 million.