An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.90, result in an increase in real GDP by:

An economic system in which ritual, habit, and custom dictate most economic and social behavior

a. command economy b. traditional economy c. market economy d. free enterprise economy

Economists predicted that the price of a depletable natural resource would rise by about 15 percent. Actually the price fell 10 percent. What most likely happened?

a. A government subsidy was removed. b. Extraction costs increased. c. Price controls were suspended. d. An unexpected discovery of reserves was made.