Let Y = Real GDP and Y_d = Disposable Income

question 104

Multiple Choice

Let Y = real GDP and Y_d = disposable income.Suppose initially, Y = Y_d and the marginal propensity to consume (MPC)
Is 0.8.All components of aggregate expenditures except consumption are autonomous.Now suppose the government imposes an income tax rate of 30% on real GDP.As a result, one additional dollar will increase consumption by

• A)$0.24.
• B)$0.30.
• C)$0.56.
• D)$0.50.

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Definitions:

Human Relations

The study of interactions between individuals, focusing on improving job satisfaction, employee morale, and productivity.

Single-parent Families

Households in which one adult is responsible for the raising of children due to various circumstances such as divorce, separation, or death of a partner.

Workplace

The workplace is a location or environment where people engage in physical or intellectual tasks to produce goods or provide services.

Taylor's Approach

A management theory developed by Frederick Winslow Taylor, emphasizing scientific studies of tasks to increase productivity.