Assume That Full-Employment Real GDP Is Y = $1,200 Billion

question 154

Multiple Choice

Assume that full-employment real GDP is Y = $1,200 billion, the current equilibrium real GDP is Y = $800 billion, and the MPC is 0.50. What level of aggregate expenditures will close the recessionary gap?

• A)$50 billion.
• B)$80 billion.
• C)$140 billion.
• D)$200 billion.
• E)$400 billion.

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Definitions:

Sales Potential

The maximum total sales of a product or service that could be achieved within a specific market over a given time period.

Follow-Up

Maintaining contact with a customer (or prospect) in order to evaluate the effectiveness of the product and the satisfaction of the customer.

Selling Process

A series of steps taken by sales professionals to identify prospective buyers, communicate value, and close sales transactions.

Customer Relationship Marketing

Customer relationship marketing is a strategy that focuses on building and maintaining long-term, engaging relationships with customers to foster loyalty and repeat business.