Assume the Level of Investment Is $8 Billion and Independent

question 18

Essay

Assume the level of investment is $8 billion and independent of the level of total output.Complete the following table and answer the following questions about this private closed economy. (a) What are the sizes of the MPC, MPS, and multiplier in this economy?
(b) If full employment in this economy is 140 million, will there be a recessionary or inflationary gap? Explain the consequences of this gap.(c) Using the multiplier concept, determine what change in investment is needed to eliminate the output gap.(d) If full employment in this economy is 110 million, will there be an inflationary or recessionary gap? Explain the consequences of this gap.(e) Using the multiplier concept, determine what change in investment is needed to eliminate the output gap from part (d).

---

Definitions:

Placement Processes

The methods and strategies used to assign individuals to appropriate jobs or roles within an organization.

Discrimination Suit

Legal action taken against an employer or organization accused of unjust treatment of employees based on race, gender, age, disability, or other protected categories.

Search Costs

The time, energy, and financial resources spent in looking for goods, services, or information.

HR Professionals

Individuals who work in human resources, dealing with the management of employee-related functions such as recruitment, training, and benefits.