ECON 203 Lecture 6: Principles of Macroeconomics

67) In the short run, the firm will NEVER produce A) 0 B) 4 units of output. C) 6 D) 7 E) 8

What will the multiplier be when the MPS is 0, .4, .6, and 1? What will it be when the MPC is 1, .90, .67, .50 and 0? How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is .80? If the MPC instead is .67?

Mikey is very picky and insists that his mom make his breakfast with equal parts of cereal and apple juice any other combination, and it ends up on the floor. Cereal costs 4 cents per tablespoon, and apple juice costs 6 cents per tablespoon. If Mikey's mom budgets $8 per month for Mikey's breakfast, how much cereal and juice does she buy?

Select one

a. 40 tablespoons of cereal and 75 tablespoons of juice.

b. 100 tablespoons of cereal and 67 tablespoons of juice.

c. 80 tablespoons each of cereal and juice.

d. 40 tablespoons each of cereal and juice Previous page.