Suppose the Government Finds It Can Increase Equilibrium Real GDP

question 39

Multiple Choice

Suppose the government finds it can increase equilibrium real GDP by $45 billion by increasing government purchases by $18 billion.On the basis of this information we can say that the:

• A)MPS in this economy is .4.
• B)MPC in this economy is .4.
• C)MPC in this economy is .3
• D)multiplier is 3.

Evaluate the legal principles surrounding reliance and promises in contract modifications.

Recognize the limitations and requirements for the enforceability of oral agreements in contract law.

Understand the parol evidence rule and its exceptions.

Identify the types of contractual rights that are non-assignable.

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Definitions:

Arrow's Impossibility Theorem

A theory indicating it is impossible to formulate a social preference ordering that satisfies all of a specific set of reasonable criteria when voters have three or more options.

Pairwise Majority Voting

A voting system in which each option is compared head-to-head with every other option, with the option winning the most direct comparisons being considered the overall winner.

Condorcet Paradox

A situation in social choice theory where collective preferences can be cyclic (not transitive) despite the transitive preferences of individual voters.

Majority Rule

A decision-making principle where the preferences or decisions supported by more than half of the participants are adopted.