Consider a Simple Macro Model with a Constant Price Level

question 47

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the simple multiplier is 3 and there is a $2 million increase in autonomous investment spending,then the equilibrium level of income will increase by

• A)$1.2 million.
• B)$2 million
• C)$3 million.
• D)$4.5 million.
• E)$6 million.

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Definitions:

Exportive IHRM Approach

Transferring home HRM systems to foreign subsidiaries without modifying or adapting to the local environment.

Subsidiaries

Companies that are fully or partially owned and controlled by another company, known as the parent company.

Transaction Costs

Expenses incurred during the exchange of goods or services, beyond the price of the goods or services themselves.

Integrative IHRM Approach

A holistic method in international human resource management that combines several aspects of HR practices across multiple countries to achieve global objectives.