In the long run, real output can be less than, equal to, or greater than the economy's potential output.

Study the graph. Suppose this nation starts with producing all military goods. It then decides to produce a mix of civilian and military goods represented by point B. What represents the costs in military goods given up?

What will be an ideal response?

The marginal propensity to consume is the proportion of each new dollar's worth of income that is spent

Indicate whether the statement is true or false