Assume does a MCP = .75. If you got a $2,000 raise, how much would you consume and how much
would you save?
1. If the MPS = 0.1, then the value of the multiplier equals:
2. If the multiplier equals 4, t
1. Classify the following as either employed, unemployed, or not in the labor force, according to the
Bureau of Labor Statistics.
a. Nancy Lopez reported that last week she worked 30 hours as a sales manager for the Coca-Cola
Shifts in AS
HW 18 - 1
For each of the exogenous supply shocks draw a new AS curve that will represent
the change caused by the supply shock. Label the new curve AS1. Then briefly
explain the reason for the change in the graph.
For each situation described below, illustrate the change on the AD-AS graph. Then describe the change
in Price level and GDP by circling the correct arrow for each.
1. Congress passes a tax cut for the middle
class and the president
HW 14 - 1
1. Eli received a 6% raise in his salary last year. During the same time period, overall prices in
the economy have increased by 4%. Given this information, Elis real wage has
a. stayed constant
b. increased by 6%