1 If the marginal propensity to consume is 0.75, it would mean that:

consumers spend $ 2.50 out of every $10 of additional disposable income.

the government spending multiplier is 1.333

consumers save $ 2.50 out of every $10 of additional disposable income.

consumers spend 75 % of their disposable income.

2 If the unemployment rate is 5.6 %, this means that:

94.4 percent of all working age people were employed.

5.6 percent of the working-age population is unemployed.

the labour force participation rate is 94.4 percent.

3 You purchase a bag of chocolate chips for $3, a bag of flour for $1, a bag of sugar for $.50, a half dozen eggs for $.50, and a half pound of butter for $2. You use all these ingredients to make three dozen cookies. Your roommate offers you $ 20 for them, and you happily accept. How much does this process contribute to GDP?

Question 27 options:

$7

$ 13

indeterminant

$ 20

5.6 percent of the sum of the employed and the unemployed are jobles