Which of the following is the best choice to eliminate a recessionary gap if the desired fiscal stimulus is $10 billion and the aggregate demand shortfall is $100 billion, while the MPC is 0.90?

All of the following statements are examples of positive economic analysis except

A) as the unemployment rate decreases, fewer people are willing to relocate to find jobs. B) as the economy improves, more workers from other countries are migrating to the United States. C) exports from the United States should be increased to offset the growing number of imports into the United States. D) the U.S. economy is growing at a slower rate than the economy of Brazil.

The "life cycle" hypothesis sates that

a. MPC remains constant as national income rises b. MPC varies with age c. transitory income determines consumption d. MPC varies with permanent income e. consumption spending is independent of income