The Government-Purchases Multiplier Is Defined As

question 59

Multiple Choice

The government-purchases multiplier is defined as:

• A)1 - (1/MPC)
• B)1/(MPC - 1)
• C)1 - (MPC - 1)
• D)1/(1 - MPC)

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Definitions:

Capital Per Worker

The amount of capital stock available per employee in the workforce.

Not Proprietary

Refers to something that is not owned or controlled by a specific entity and is open for use by anyone.

Economic Growth

An increase in the production of goods and services in an economy over a period, typically reflected as a percentage increase in real GDP.

Doubling Inputs

When the quantities of all inputs used in the production process are increased by the same proportion.