In a Simple Macro Model with Government and Demand- Determined

question 31

Multiple Choice

In a simple macro model with government and demand- determined output, to reduce equilibrium national income by $100 billion, G must be

• A)raised by $100 billion times the simple multiplier.
• B)lowered by $100 billion divided by the simple multiplier.
• C)lowered by $100 billion.
• D)lowered by $100 billion times the simple multiplier.
• E)raised by $100 billion divided by the simple multiplier.

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Definitions:

Employee

An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.

First-Level Outcomes

Initial results or effects of an action or decision, often serving as the immediate impacts before more complex or long-term outcomes emerge.

Second-Level Outcomes

Refers to the indirect or long-term results of an action or decision, beyond the immediate or primary effects.

Expectancy Model

A psychological theory that explains motivation as a function of individuals' expectations about their ability to perform tasks, the expected outcomes of these tasks, and the value they place on these outcomes.