If autonomous consumption is $5,000 . the MPC is 0.7, net taxes are $2,000 . investment spending is $4,000 . and government purchases equal $2,500, and NX = $0, what is equilibrium GDP?

The budget line shift from ab to cd in the above figure is consistent with:

A) decreases in the prices of both M and N . B) an increase in the price of M and a decrease in the price of N . C) a decrease in money income. D) an increase in money income.

The ______________is a period of production long enough for producers to adjust the quantities of all of their resources.

Fill in the blank(s) with the appropriate word(s).