Consider a Simple Macro Model with a Constant Price Level

question 58

Multiple Choice

Consider a simple macro model with a constant price level and demand- determined output. Using this model, if economists want to estimate the effect of a given change in desired investment on equilibrium national income, they would multiply the change in desired investment by the

• A)marginal propensity to save.
• B)equilibrium level of national income.
• C)reciprocal of the marginal propensity to spend.
• D)simple multiplier.
• E)average propensity to save.

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Definitions:

Operations Chart

A chart depicting right- and left-hand motions.

Right-Hand/Left-Hand Chart

A visual tool used to analyze the workflow and ergonomics in tasks, indicating actions done by the right and left hands to improve efficiency and reduce fatigue.

Idle Time

Periods when resources, such as machinery or employees, are available but not in use due to a lack of work or inefficient scheduling.

Kanbans

Signaling systems used in just-in-time (JIT) production processes to regulate the flow of materials between different stages of production.