If the MPS = .25, and investment falls from $100 to $75, real GDP will decrease by:

If the cross elasticity of demand for good A with respect to good B is +2.7, then good A is

A. an inferior good. B. a normal good. C. a substitute for good B. D. a complement to good B.

The government will conduct expansionary fiscal policy if it attempts to

A. reduce real GDP. B. reduce the price level. C. shift the aggregate demand curve to the left. D. reduce the level of unemployment.