Assume the Economy Is in Recession and Real GDP Is

question 172

Multiple Choice

Assume the economy is in recession and real GDP is below full employment. The marginal propensity to consume (MPC) is 0.75, and the government follows Keynesian economics by using expansionary fiscal policy to increase aggregate demand (total spending) . If an increase of $1,000 billion aggregate demand can restore full employment, the government should:

• A) increase spending by $250 billion.
• B) decrease spending by $750 billion.
• C) increase spending by $1,000 billion.
• D) increase spending by $750 billion.

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Definitions:

Baldwin and Ford

Baldwin and Ford is a model that outlines the factors influencing the transfer of training, including trainee characteristics, training design, and work environment.

Transfer of Training Process

The application of skills, knowledge, or attitudes learned in one context to another context, typically from a training environment to the job.

Training Inputs

The resources, materials, and information required to effectively design and implement a training program.

Learning and Retention

The process by which individuals acquire new skills or knowledge and the extent to which they are able to retain and apply this information over time.