If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP $200 billion, then by how much would they have to change taxes?

Economies of scale involve

A. economies realized by producing several goods simultaneously. B. economies in marketing and transportation of many products. C. economies from being larger and have lower cost per unit. D. all of the above.

Kariuki decreases his consumption of grapes after his income goes up. For Kariuki

A) grapes and income are substitute goods. B) grapes and income are complementary goods. C) grapes are an inferior good. D) grapes are a superior good.