1.

	Output level		Opportunity Cost
	Food	Cars	Food	Cars
Canada	100	20
U.S.	500	50

2. Which country should specialize in food?

3. Which country should specialize in cars?

5. If the MPC is 0.8, the marginal propensity to save will be_____.

6. Suppose MPC = 0.75.

If the government increases spending by $100 billion, Workers get $100 billion in income, spend _______ billion.

7. What is the formula of Government outlays?

Government outlays = _____ + ________

8. Government revenues is _____

9. The largest portion of outlays are_____

10. Three things that impactLong-Run Aggregate Supply. They are_______ , ________ and ________ .