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Exhibit 16A-4 Macro AD\AS Models as Shown in Exhibit

question 21

Multiple Choice

Exhibit 16A-4 Macro AD\AS Models $Exhibit 16A-4 Macro AD\AS Models As shown in Exhibit 16A-4, assume the marginal propensity to consume MPC equals 0.80. Using discretionary fiscal policy, federal government spending should be ____ in order to restore the economy from E<sub>1</sub> to full employment. A) increased by $2 trillion B) decreased by $2 trillion C) decreased by $.40 trillion D) increased by $.40 trillion E) increased by $.80 trillion$ As shown in Exhibit 16A-4, assume the marginal propensity to consume MPC equals 0.80. Using discretionary fiscal policy, federal government spending should be ____ in order to restore the economy from E₁ to full employment.

Solve problems involving distance, rate, and time.

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Definitions:

Demographic Trends

Patterns and changes in the composition of a population over time, such as age, race, and gender distributions.

Political System

The set of formal legal institutions that constitute a government or a state. This includes laws, policies, and procedures that define the way a state is governed.

Hispanics

People from, or descendants of people from, Spanish-speaking countries, especially those living in the United States.

Latinos

A term used to describe people of Latin American origin or descent, often living in the United States.