Using the Keynesian Cross, If Autonomous Consumption Is $300 and Investment

question 2

Multiple Choice

Using the Keynesian cross, if autonomous consumption is $300 and investment is $200, and the marginal propensity to consume is 0.9, while government spending, net exports and taxes are zero, then equilibrium output is

• A) $450.
• B) $500.
• C) $5,000.
• D) $950.

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Definitions:

Population Growth Rate

The rate at which the number of individuals in a population increases in a given time period, typically expressed as a percentage of the population.

Per Capita Incomes

Per capita incomes represent the average income earned per person in a specific area, calculated by dividing the area's total income by its population, indicating the general wealth of the population.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicating improvement in the standard of living.

Human Resources

The department of a business or organization that deals with the hiring, administration, and training of personnel.