If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally by $1,000 billion and cause inflation. If the marginal propensity to consume (MPC) is 0.80, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:

Refer to the table above. If the factory plans to hire a seventh worker whose marginal product is 15 pairs, the total output after he is hired will be:

A) 15 pairs. B) 105 pairs. C) 280 pairs. D) 295 pairs.

In comparing tariffs and quotas, we know that

A) neither raises revenues for the federal government. B) both raise revenues for the federal government. C) tariffs raise revenues for the federal government, while quotas do not. D) quotas raise revenues for the federal government, while tariffs do not.