The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 66

Multiple Choice

The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.75
• net tax rate (t) = 0.20
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. FIGURE 22-2
Refer to Figure 22-2.What is the value of the multiplier in this economy?

• A)1.33
• B)1.67
• C)2.0
• D)2.5
• E)6.67

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Definitions:

Behaviorally Anchored Rating Scale

A method of evaluating employees' performance by directly comparing their behaviors with specific examples of behavior that are anchored on a scale.

Behavioral Observation Scale

A performance appraisal method that rates the frequency of specific behaviors exhibited by an employee in the workplace.

Performance Management

A continuous process by which managers and employees work together to plan, monitor, and review an individual's work objectives and overall contribution to the organization.

Biased Source

A source of information that shows prejudice towards one side of an argument or issue, often leading to a lack of impartiality.