(05.06 LC) The aggregate production function shows a positive relation between the output produced and capital used per worker. What does the slope of the production function signify?

(03.02 MC) If the marginal propensity to consume (MPC) is 0.8, then what should the magnitude of change in the tax levels be when the government wants to increase the national income by $3,000?

(04.07 MC) In a closed economy, national savings can be defined as the sum of

(05.03 MC) Assume that the money supply in an economy operating at its full-employment level increases by 4%. Which of the following statements is true in the long run?

(05.05 MC) Which of the following is true about the supply of loanable funds and interest rates when the government borrows money to finance its budget deficit?

(03.09 LC) Which of the following is the result of automatic fiscal stabilizers that help an economy recover from inflationary periods?

(05.04 MC) Which of the following will lead to an increase in a country’s existing national debt?

(01.03 MC) If Country A can produce 3 X or 6 Y with a unit of labor and Country B can produce 3 X and 3 Y with a unit of labor, which of the following statements is true?

(05.05 MC) When the government borrows money to fund deficit spending, which of the following is likely to occur?

(05.04 MC) Assume that in Year 1, a government’s expenditure and transfer payments equal $4 billion and its revenue is $4.2 billion; and in Year 2, its expenditure and transfer payments are $5.7 billion and its revenue is $4.5 billion. Which of the following statements is true in this scenario?