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:

Social Support

Tangible and/or emotional support provided in time of need by family members, friends, and others; the feeling of being loved, valued, and cared for by those toward whom we feel a similar obligation.

Countertransference

A phenomenon where the therapist projects his or her own feelings and issues onto the client, influenced by the therapist's personal background.

Unconditional Approval

Acceptance and support that is given without any conditions or limitations, often used in the context of personal relationships or therapeutic settings.

Behavior Therapists

Professionals who apply principles of learning and conditioning to help clients change undesirable behaviors.