Suppose the MPC is 0.9 . There are no crowding out or investment accelerator effects. If the government increases its expenditures by $30 billion, then by how much does aggregate demand shift to the right? If the government decreases taxes by $30 billion, then by how far does aggregate demand shift to the right?

If a firm was owned by its employees,

A) there is a higher probability that wage reductions would outweigh layoffs. B) those in charge would not act any differently than regular owners; there would still be layoffs. C) those not in charge would remain risk neutral. D) wage reductions would be lower than if the firm was run for profit.

A firm that was initially a monopsonist, but now has to buy from a competitive resource market will:

a. buy more amount of resources and pay a higher price for these resources. b. buy the same amount of resources and pay a higher price for these resources. c. buy less amount of resources and pay a lower price for these resources. d. buy less amount of resources and pay a higher price for these resources. e. buy more amount of resources and pay a lower price for these resources.