If the MPC Is 0

question 39

True/False

If the MPC is 0.8 in a private closed economy, a $30 billion increase in planned investment will increase equilibrium real GDP by $120 billion.

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Definitions:

Leisure Time

The period during which an individual is not engaged in work or essential activities, allowing for rest, recreation, or personal pursuits.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period, a measure of economic performance.

Economic Well-being

The level of prosperity and quality of life in an economy, measured by factors such as income, employment, and access to goods and services.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific time period, serving as a broad measure of economic activity.