If an Increase in Autonomous Consumption Spending of $10 Million

question 88

Multiple Choice

If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP,then

• A)the MPC is 0.5.
• B)the MPC is 0.75.
• C)the MPC is 0.8.
• D)the MPC is 0.9.

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Definitions:

Goal Congruence

A condition in organizational management whereby the goals of the individuals align with the objectives of the organization, fostering a collaborative effort towards achieving those objectives.

Decentralised Organisation

An organizational structure in which decision-making authority is distributed among various levels and departments, promoting agility and faster decision-making.

Autonomous Managers

Autonomous managers are individuals who have the independence and authority to make decisions and manage operations without constant oversight from higher management levels.

Revenue Centre Manager

An individual responsible for generating income and managing the revenue-related activities within a specific area of an organization.