Using the Keynesian Cross, If Autonomous Consumption Is $200, Government

question 57

Multiple Choice

Using the Keynesian cross, if autonomous consumption is $200, government spending and taxes are $300, investment is $100, net exports is $100, and the marginal propensity to consume is 0.5, find equilibrium output.

• A) $600
• B) $750
• C) $1,400
• D) none of the above

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Definitions:

Rightness

The quality of being morally correct, just, or honorable, often used to describe actions or decisions that conform to moral or ethical principles.

Backward-looking Reasons

Justifications for actions or decisions that are based on events, information, or values from the past.

Act Consequentialism

A moral theory that assesses the morality of actions based on their outcomes or consequences.

Act Consequentialism

An ethical theory that judges the moral worth of an action based solely on the outcomes or consequences of that action.