An Economy Has a Fixed Price Level, No Imports, and No

question 160

Multiple Choice

An economy has a fixed price level, no imports, and no income taxes.MPC is 0.5 and real GDP is $300 billion.Businesses increase investment by $10 billion.The new level of real GDP is

• A)$305 billion.
• B)$5 billion.
• C)$320 billion.
• D)$20 billion.
• E)$300 billion.

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Definitions:

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.

Status

The relative social, professional, or other standing of someone or something.

Ethnocentrism

The tendency to consider one’s culture superior to others.

Cultures

The shared values, traditions, norms, customs, arts, history, folklore, and institutions of a group of people.