Jack Nelson, a supervisor in the hardware department at Sears, received a 3,000 increase in his annual disposable income. Suppose his marginal propensity to consume is 0.80. How much of the 3,000 increase will Jack spend on consumption?
A) 3,000 B) 2,750 C) 2,200 D) 2,400 E) 2,500
Question 2
The table above gives the labor market for a small foreign economy. Equilibrium in the labor market occurs at a real wage rate of
A) 7.15 per hour.
B) 8.50 per hour.
C) 9.00 per hour.
D) 7.65 per hour.
E) 8.00 per hour.
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