In a Simple Macro Model with Demand-Determined Output, the Simple

question 56

Multiple Choice

In a simple macro model with demand-determined output, the simple multiplier is equal to 1/1-z) , where z
Equals the

• A) average propensity to spend.
• B) average propensity not to spend.
• C) level of autonomous expenditure.
• D) marginal propensity to spend.
• E) marginal propensity not to spend.

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Definitions:

Right-to-Work Laws

Legislation that prohibits union security agreements, ensuring that employment is not affected by membership or non-membership in a labor union.

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at agreeing on working conditions, wages, and benefits.

Minimum Wage

The lowest legal salary that employers can pay their employees.

Labor Union

An organization of workers that aims to negotiate with employers for better wages, working conditions, and benefits.