Exhibit 11-2 Aggregate Demand and Supply Model Suppose the Economy

question 99

Multiple Choice

Exhibit 11-2 Aggregate demand and supply model Suppose the economy in Exhibit 11-2 is in equilibrium at point E₁ and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to full employment at point E₂ by:

• A)decreasing government tax revenue by $100 billion.
• B)decreasing government tax revenue by $750 billion.
• C)increasing government tax revenue by $100 billion.
• D)increasing government tax revenue by approximately $33 billion.
• E)decreasing government tax revenue by approximately $33 billion.

Understand the basic elements required for a valid contract, including offer, acceptance, and consideration.

Identify and describe different types of contracts (bilateral, unilateral).

Recognize the legal implications of breaching a contract.

Understand the distinction between intellectual property and other forms of property.

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Definitions:

Social Inventions

Innovations in the social realm that change or influence the way societies operate, interact, or govern themselves.

Physical Assets

Tangible resources or possessions that have value and are owned by an individual or organization, such as buildings, machinery, or land.

Implements of Technology

The tools and devices developed from scientific knowledge used for practical purposes, especially in industry.

Differentiates Humans

Characteristics or qualities that distinguish humans from other species, including cognitive abilities, emotional complexity, and social behavior.