If the United States decides to allocate more resources to capital goods and less to consumer goods, the United States will obtain a greater degree of:

The average variable cost curve will shift upward if:

a) there is a technological advance. b) the price of the variable input decreases. c) the price of the variable input increases. d) there is an increase in fixed cost. e) the price of output increases.

Suppose there is a $200 billion increase in government spending. We know that this increase in government spending will cause which of the following to occur?

A) equilibrium real GDP will increase by exactly $200 billion. B) an increase in equilibrium real GDP and an increase in the multiplier. C) an increase in equilibrium real GDP and a reduction in the multiplier. D) an increase in equilibrium real GDP and no change in the multiplier.