The Equilibrium Level of Real GDP Is $1,000, the Target

question 100

Multiple Choice

The equilibrium level of real GDP is $1,000, the target level of real GDP is $1,250, and the marginal propensity to consume (MPC) is 0.60. The target can be reached if government spending is:

• A) increased by $60 billion.
• B) increased by $100 billion.
• C) increased by $250 billion.
• D) held constant.

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Definitions:

Agreeableness

A personality trait characterized by attributes such as kindness, friendliness, warmth, and compassion towards others.

Life Review

A reflective process, often occurring in older adulthood, where individuals recall and evaluate experiences and events of their lifetime.

Meaning

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Ageist Attitude

Prejudice or discrimination against individuals or groups based on their age, often directed towards older adults.