Suppose Real GDP Increases from $13 Trillion to $14 Trillion

question 94

Multiple Choice

Suppose real GDP increases from $13 trillion to $14 trillion and, as a result, consumption expenditure increases from $13 trillion to $13.75 trillion. This result implies that the MPS equals

• A) 0.75.
• B) 0.25.
• C) 0.
• D) some amount that cannot be determined without more information.

---

Definitions:

Experimental Manipulation

The process of intentionally changing a variable in an experiment to study its effects on other variables.

Interrupted Time Series Design

A design in which the effectiveness of a treatment is determined by examining a series of measurements made over an extended time period both before and after the treatment is introduced. The treatment is not introduced at a random point in time.

Control Series

A control series is a sequence of observations or measurements used in experiments or statistical analysis as a standard of comparison to detect changes or effects.

Way to Improve

Strategies or methods employed to enhance performance, quality, or efficiency in various contexts.