Consider a closed economy without the government. If the GDP of the economy is $25,000 and the savings rate in the economy is 25%, the aggregate savings in the economy is:

When consumers pay only a fraction of the true cost of medical services, their demand increases. The marginal cost of producing these extra services

A) is less than the marginal benefit consumers receive from them. B) is equal to the marginal benefit consumers receive from them. C) is greater than the marginal benefit consumers receive from them. D) is zero due to the insurance payments.

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow. Figure 32.2Refer to Figure 32.2. According to monetarists, an expansionary fiscal policy in the long run and after all the adjustments have been made

A. increases the price level above P1, but does not change equilibrium output. B. increases equilibrium output above Y1 and decreases the price level below P1. C. does not increase equilibrium output or the price level. D. increases equilibrium output above Y1, but does not change the price level.