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Which statement is NOT true of economic model building?

Heather has one employee in her sweater shop who can sew six sweaters a day. When she hires a second person, the two employees can make ten sweaters together. The extra benefit received from hiring a second worker is _____ sweaters.

If the marginal propensity to save is 0.15, then $15 of every additional $100 of income will be spent on savings.

Which of these statements is (are) true? I. At full employment, expansionary fiscal policy results in an increase in aggregate demand, increasing output temporarily above full employment. II. When the government runs a deficit, it must sell bonds. III. When the federal government spends more than tax revenues permit, it can sell bonds only to foreigners.

Discretionary fiscal policy requires action from Congress.

Increased productivity leads to increased aggregate supply.

Mandatory spending as part of the federal budget has been growing since the 1960s.

The fact that automatic stabilizers work without having Congress or the president explicitly intervene is a major disadvantage.

If you were not studying economics, you could be doing one of these: sleeping in (which you value at $5), playing cards with your friends (which you value at $10), or working (you would have earned an extra $8). The opportunity cost of studying economics is therefore:

Yun quits his job in Topeka, Kansas, and moves to Austin, Texas, to get involved in live music. He is unemployed for three months while he looks for a new job. Yun is frictionally unemployed.