Suppose That Congress Allocates $1 Billion to Clean Up After

question 226

Multiple Choice

Suppose that Congress allocates $1 billion to clean up after hurricanes in 2018.It also raises taxes by $1 billion to keep the deficit from growing.If the marginal propensity to consume is 0.9,what is the effect on equilibrium GDP?

• A)GDP does not change.
• B)GDP increases by $10 billion.
• C)GDP increases by $900,000.
• D)GDP increases by $1 billion.

Analyze selling and administrative expenses within budgeting contexts.

Comprehend the calculation and implications of spending variances for specific cost categories.

Assess the impact of occupancy, facility, and supplies expenses on flexible budgets.

Evaluate revenue and expense variances in comparing actual results to budgeted figures.

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Definitions:

Personal Enjoyment

The pleasure or satisfaction an individual derives from activities or experiences, driven by personal preference and interest.

Masculinity/Femininity

Societal attributes, behaviors, and roles associated with being male or female, highlighting the distinctions and expectations placed upon genders.

Gender Roles

Societal norms dictating the behaviors, activities, and attributes considered appropriate for men and women based on their sex.

Mores

Social norms that are widely observed and have great moral significance within a particular society.