Use the Following Situation to Answer the Question : Situation

question 11

Multiple Choice

Use the following Situation to answer the question : situation 20-2 Assume a closed economy. Suppose that autonomous consumption equals $400, planned investment equals $500, government expenditure equals $200, net taxes equals $50, and the mpc equals 0.9.

-Using the information in situation 20-2,if government spending increases by $100,then the equilibrium aggregate output will change by

• A)-$1,000.
• B)-$100.
• C)$100.
• D)$1,000.

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Definitions:

Middle Term

In a syllogism, the term that appears in both premises but not in the conclusion, serving as a link between the other two terms.

Major Premise

The first proposition in a syllogism, from which a conclusion is drawn in conjunction with a minor premise.

Validity Rules

Guidelines or principles used to evaluate the correctness of the logical structure of arguments, ensuring that the conclusion follows from the premises.

Validity

The extent to which an argument's conclusion logically follows from its premises, without regard to the actual truth of the premises.