Use the following table showing the consumption schedule for an economy to answer the next question. All figures are in billions of dollars.RGDPConsumption$440$450490490540530590570640610Given a level of investment and government expenditures totaling $30 billion, zero net exports, and a lump-sum tax of $30 billion, a reduction of government expenditures of $20 billion at each level of real GDP will result in an equilibrium real GDP of

For most goods and services the income elasticity of demand is

A) negative. B) positive. C) invisible. D) inverse.

What happens to the marginal product of labor if more capital is added to a production process?

A. More capital will cause the marginal product of labor not to diminish. B. More capital will affect the marginal product of capital, not the marginal product of labor. C. More capital generally causes the marginal product of labor to rise. D. More capital generally causes the marginal product of labor to fall.