Consider a Model in Which Output Is Demand- Determined

question 28

Multiple Choice

Consider a model in which output is demand- determined. If the marginal propensity to spend out of national income is 0.4, then a $0.6 billion decrease in government purchases will cause equilibrium national income to by approximately .

• A)decrease; $0.24 billion
• B)increase; $1.00 billion
• C)decrease; $1.50 billion
• D)decrease; $1.00 billion
• E)increase; $1.50 billion

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Definitions:

Freelance Workers

Individuals who work on a self-employed basis, offering their services to various clients rather than being committed to a single employer.

Independent Contractors

Individuals who provide services to another entity under terms specified in a contract or within a verbal agreement, not considered employees.

On-demand Projects

Tasks or projects that are initiated and executed in response to specific demands or requirements, often characterized by their immediate nature and short turnaround times.

Safe Environment

A setting where individuals are protected from physical, psychological, or emotional harm, facilitating a sense of security and well-being.