Author Question: A price floor set above the equilibrium price is binding. a. True b. False Indicate whether the ... (Read 73 times)

wenmo

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A price floor set above the equilibrium price is binding.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

To achieve a 500 billion increase in AD, if the MPC is 0.8, what increase in government purchases would be called for?
 a. 625 billion
  b. 500 billion
  c. 400 billion
  d. 100 billion



vboyd24

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Answer to Question 1

True

Answer to Question 2

d



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