In the Keynesian-Cross Model with an MPC > 0, If

question 43

Multiple Choice

In the Keynesian-cross model with an MPC > 0, if government purchases increase by 250, then the equilibrium level of income:

• A)increases by 250.
• B)increases by more than 250.
• C)decreases by 250.
• D)increases but by less than 250.

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Definitions:

Operations Management

Management's area of responsibility that involves planning and controlling the procedures of production and reengineering business activities in the making of goods or services.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as effectively as possible.

Service Sector

A segment of the economy that involves providing services, as opposed to producing goods, including sectors like retail, healthcare, and education.

Manufacturing Sector

The sector of the economy that is engaged in the production of goods through the processing of raw materials and components into finished products.