Equilibrium Real GDP Is $400 Billion, the MPC = 0

question 352

Multiple Choice

Equilibrium real GDP is $400 billion, the MPC = 0.9, and there are no income taxes or imports. Investment increases $40 billion. If the price level is constant, after the increase in investment, equilibrium real GDP will be

• A) $440 billion.
• B) $360 billion.
• C) $600 billion.
• D) $800 billion.

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Definitions:

Minority Workers

Individuals from racially, ethnically, or culturally distinct groups who are employed within a workforce predominantly composed of a different majority group.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, and the acknowledgment, appreciation, and promotion of this diversity.

Pluralism

The recognition and affirmation of diversity within a political body, which permits the peaceful coexistence of different interests, convictions, and lifestyles.

Multiculturalism

Involves pluralism and respect for diversity.