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

---

Definitions:

Gay and Lesbian Households

Family units comprised of individuals of the same gender in a romantic relationship, often with children.

Psychological Well-being

Psychological well-being refers to the state of an individual's mental health, encompassing emotional, cognitive, and social aspects of happiness and contentment.

Peer Relationships

The interactions and bonds formed between individuals of similar age groups, which play a significant role in social and emotional development.

Military Violence

Acts of aggression and force carried out by armed forces, often in the context of conflict or war.