Refer to the diagram. At the profit-maximizing output, total variable cost is equal to:

Figure 10.3 United States Government Source of Funds and Outlays, Fiscal 2011

What will be an ideal response?

An economy has no imports or income taxes. An increase in autonomous expenditure of $40 billion increases equilibrium expenditure by $160 billion. The expenditure multiplier equals

A) 2. B) 8. C) 6. D) 16. E) 4.