Consider the Simplest Macro Model in Which Aggregate Output Is

question 140

Multiple Choice

Consider the simplest macro model in which aggregate output is demand-determined.If autonomous consumption increases by $2 billion causing equilibrium national income to rise by $6 billion,the marginal propensity to spend must be

• A)1.0.
• B)0.5.
• C)0.2.
• D)0.67.
• E)3.0.

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Definitions:

Strong Effect

A significant impact or influence that a variable or factor has on a particular outcome or result.

High N Pow

High N Pow, or high need for power, refers to an individual's desire to influence, control, or have authority over others.

Strategic Contingencies

Critical factors or events that must be addressed in strategic planning to ensure an organization can achieve its goals and respond to changes in the environment.

Scarce Resources

Limited supplies of goods or services that are available for use by individuals or organizations.