If MPC = 0

question 183

Multiple Choice

If MPC = 0.9, equilibrium real GDP is $1,000, and full-employment real GDP is $2,000, then how much should government spending change to bring about full employment?

• A) +1,000.
• B) -100.
• C) +900.
• D) +100.
• E) -0.9.

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Definitions:

Consent

Voluntary agreement to or acquiescence in what another person proposes or desires, often necessary in legal and medical contexts.

False Imprisonment

The unlawful restraint of a person's freedom of movement without legal authority or justification.

Intentional Confinement

Deliberately restraining or restricting someone's freedom of movement without legal authority or justification.

Assault

An act that creates a fear in another person of imminent physical harm or an attempt or threat to physically harm another person.