If the multiplier is 10, the MPC is

A temporary increase in government spending that leads to only a small decline in lifetime wealth likely shifts the output demand curve to the

A) right by more than the rightward shift in output supply. B) right by less than the rightward shift in output supply. C) left by more than the leftward shift in output supply. D) left by less than the leftward shift in output supply.

Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE?

A. There are no opportunity costs involved in choosing one point on the curve over all other points. B. Society cannot have more of both goods at the same time. C. An additional computer can be produced only if fewer televisions are produced. D. The trade-off between computers and televisions is not constant.