Refer to Figure 24-4. Given the economy is at point A in year 1, what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?

When applying the marginal principle, you should pick the level at which the activity's marginal benefit equals its marginal cost

Indicate whether the statement is true or false

If the multiplier = 2.5, the MPS would be

A) 0.25. B) 0.4. C) 0.6. D) 0.75.