Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 69

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. If government purchases increases by $200 billion, the aggregate expenditures curve will shift up by

• A) $200 billion.
• B) $200 billion *the multiplier.
• C) $200 billion * marginal propensity to consume.
• D) $200 billion *(1 ÷ marginal propensity to consume).

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Definitions:

Undesirable Behavior

Actions or conduct deemed inappropriate, disruptive, or harmful by societal, cultural, or professional standards.

Environmental Conditions

Refers to the various physical and biological factors that affect the life and development of organisms.

Stimulus Control

A behavior modification technique that involves changing the environment to reduce undesired behaviors by associating them with different cues.

Time Sampling

A research method in which observations are made at specific intervals over a defined period to gather data.