Suppose the price level is fixed, the MPC is 0.8, and the GDP gap is a negative $200 billion. To achieve full-employment output (exactly), government should

Table 25-2- The following table pertains to Jouetpays, an economy in which the typical consumer’s basket consists of 13 pounds of prunes and 6 dolls.YearPrice of Prunes (Dollars per pound) Price of Dolls (Dollars per toy) 1128210631110

If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as

When a commercial bank has excess reserves,

Which of the following is an example of a labor-intensive commodity?

Which combination of factors would most likely increase aggregate demand?

Refer to the graph. Which of the following changes will shift AD1 to AD2?

If the MPS in an economy is 0.4, government could shift the aggregate demand curve leftward by $50 billion by

Contractionary fiscal policy is so named because it

Table 25-4Adam’s expenditures on food for three consecutive years, along with other values, are presented in the following table. Year123Expenditures on food$9,000 $9,200 $10,200 Consumer price index130139xRefer to Table 25-4. To the nearest dollar, Adam’s Year 1 food expenditures in Year 2 dollars amount to