Consider a Simple Macro Model with Demand-Determined Output

question 126

Multiple Choice

Consider a simple macro model with demand-determined output.Which of the following parameters will produce the most stable real GDP in the face of autonomous expenditure shocks?

• A)MPC = 0.8,t = 0.2,m = 0.3
• B)MPC = 0.7,t = 0.3,m = 0.2
• C)MPC = 0.7,t = 0.1,m = 0.4
• D)MPC = 0.9,t = 0.2,m = 0.4
• E)MPC = 0.8,t = 0.1,m = 0.2

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Definitions:

Blood Transfusion

The process of transferring blood or blood products into one's circulation intravenously.

Erythroblastosis Fetalis

A potentially life-threatening blood disorder in newborns caused by incompatibility between the blood types of a mother and her baby, leading to the destruction of the baby's red blood cells.

Rh-Positive

Referring to the presence of the Rh factor on red blood cells, which is a common blood group antigen.

Rh-Negative

A blood type classification indicating the absence of the Rh(D) antigen on the surface of red blood cells, important in blood transfusion and pregnancy.