Refer to Figure 23-4. Potential GDP equals $500 billion. The economy is currently producing GDP1 which is equal to $450 billion. If the MPC is 0.8, then how much must autonomous spending change for the economy to move to potential GDP?

The ability of a central bank to set monetary policy instruments is

A) political independence. B) goal independence. C) policy independence. D) instrument independence.

At any given point on the curve, the slope of the total product curve always equals

A) the ratio of the marginal product and the average product. B) the change in input divided by the change in output. C) the average product of the input. D) the marginal product of the input.