If Aggregate Expenditures Rise by $200 Billion and Real GDP

question 30

True/False

If aggregate expenditures rise by $200 billion and real GDP consequently rises by $500 billion, then the MPC in the economy must be 0.4.

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Definitions:

Motivate Employees

The process of inspiring staff to perform their jobs with enthusiasm, commitment, and high levels of effort.

Ownership

Refers to the legal rights and responsibilities associated with possessing an asset or property.

Innovative Ideas

Novel or creative concepts that propose a new method, solution, or product, often aiming to improve efficiency, effectiveness, or outcomes.