If Net Exports Decrease by 250 and the Mpc Is

question 29

Multiple Choice

If net exports decrease by 250 and the mpc is 0.75,equilibrium aggregate output

• A)increases by 1,000.
• B)increases by 750.
• C)decreases by 750.
• D)decreases by 1,000.

Understand the rationale behind rational expectations theory and its application in economic policy.

Understand the concept of disinflation and its effects on the economy.

Differentiate between short-run and long-run Phillips curves and their shifts.

Recognize the impact of world commodity prices on the economy.

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Definitions:

Individual Problem Solving

The process by which an individual identifies, analyzes, and finds solutions to problems on their own.

Superior

Someone who holds a higher rank or position than others in a hierarchy or organization.

Team Members

Individuals who are part of a group working together towards a common goal.

Team Empowerment

The process of giving team members the authority, confidence, and tools to take initiative and make decisions in their roles.