In the production possibilities framework, economic growth is depicted by the PPF

Refer to Table 16-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy

If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if Congress and the president had taken no action? A) real GDP and potential GDP B) real GDP and the inflation rate C) real GDP and the unemployment rate D) potential GDP and the inflation rate

The marginal propensity to save (MPS) is

A) the rate at which real savings changes over time. B) the percentage of real disposable income saved. C) the difference between the amounts of real disposable income consumed and saved. D) the percentage of an additional dollar of real disposable income that will go toward additional real savings.