Figure 23-3 -Refer to Figure 23-3. Suppose That Government Spending Increases, Shifting

question 11

Multiple Choice

Figure 23-3
-Refer to Figure 23-3. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP₁ to GDP₂, and this amount is $200 billion. If the MPC is 0.8, then what is the distance between N and L or by how much did government spending change?

• A) $16 billion
• B) $40 billion
• C) $200 billion
• D) $1,000 billion

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Definitions:

Industrial Peace

A state of harmony and cooperative relationships between labor and management, often resulting in the absence of strikes or labor disputes.

Workplace Disputes

Conflicts that arise in the workplace environment, including disagreements over policies, discrimination, wages, and working conditions.

National Labor Relations Act

A cornerstone piece of US legislation enacted in 1935 that protects the rights of employees and employers, encourages collective bargaining, and curtails certain private sector labor and management practices that can harm the general welfare.

Industrial Unionism

A labor union organizing method where all workers in the same industry, regardless of job or skill level, are organized into a single union.