Equilibrium Real GDP Is $400 Billion, the MPC = 0

question 150

Multiple Choice

Equilibrium real GDP is $400 billion, the MPC = 0.9, and there are no income taxes or imports. Investment increases $40 billion. If the price level is constant, after the increase in investment, equilibrium real GDP will be

• A) $800 billion.
• B) $600 billion.
• C) $360 billion.
• D) $440 billion.

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Definitions:

Care Ethics

An approach to moral theory that emphasizes interpersonal relationships and urges the reliance on virtues related to caring as a basis for assessing how to act in specific cases. This approach has been developed and defended by feminist theorists and is sometimes called “feminist ethics,” though in principle one can defend this approach without relating it to women or to feminist concerns.

Feminist Philosophers

Thinkers who apply feminist perspectives and analysis to philosophical issues, challenging traditional concepts and advocating for gender equality.

Laws of God

Laws of God entail the moral and ethical codes or commandments believed to be divinely provided or inspired, often found in religious texts.

Kant

Immanuel Kant was an 18th-century German philosopher known for his works on epistemology, ethics, and aesthetics, founding the doctrine of transcendental idealism.