If the MPS Is 0

question 66

Multiple Choice

If the MPS is 0.25 and the economy has a recessionary expenditure gap of $5 billion, then equilibrium GDP is

• A)$5 billion below the full-employment GDP.
• B)$5 billion above the full-employment GDP.
• C)$20 billion below the full-employment GDP.
• D)$20 billion above the full-employment GDP.

---

Definitions:

First, Second

Terms denoting order or sequence, often used in classifications, stages, or degrees of categorization.

Passive-Voice Sentence

A sentence construction where the subject of the sentence is acted upon by the verb, often obscuring who or what is performing the action.

Subject

The main topic or area of interest under discussion, investigation, or study.

Being Acted On

The state of being subject to an action or influence, often used in legal contexts to describe a party affected by another's actions.