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Refer to Figure 11

question 117

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  Refer to Figure 11.1.Assume aggregate demand is represented by AD<sub>1</sub>,full-employment output is $6.0 trillion,and the MPC is 0.75.The spending fiscal stimulus needed to reach full-employment equilibrium is A) $1 trillion. B) $2 trillion. C) $0.4 trillion D) $0.1 trillion. Refer to Figure 11.1.Assume aggregate demand is represented by AD1,full-employment output is $6.0 trillion,and the MPC is 0.75.The spending fiscal stimulus needed to reach full-employment equilibrium is


Definitions:

Regulates Hunger

The function of specific hormones, like ghrelin and leptin, and brain mechanisms that control the sensation of hunger and signal the need to consume food.

Hypothalamus

A region of the brain responsible for producing hormones that regulate body temperature, hunger, moods, release of hormones from many glands, especially the pituitary gland, and sleep cycles.

Evolutionary History

The branch of biology that studies the origins and changes in the diversity of life over time, explaining how and why species have evolved and become extinct.

Limbic System

A complex system of nerves and networks in the brain, involved in instinct and mood. It controls basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

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