Author Question: The command system relies on prices set by firms on the basis of consumer demands. a. True b. ... (Read 45 times)

Anajune7 · **on:** Jun 30, 2018

The command system relies on prices set by firms on the basis of consumer demands.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.80 . An increase in government spending of 1 billion would result in an increase in GDP of:
a. 0.
b. 0.8 billion.
c. 1.0 billion.
d. 5.0 billion.
e. 8.0 billion.