Assume the Economy Is in Recession, the MPC Is 0

question 55

Multiple Choice

Assume the economy is in recession, the MPC is 0.80, and an increase of $200 billion in spending is needed in order to reach full employment. The target can be reached if government spending is increased by:

• A) $20 billion.
• B) $200 billion.
• C) $80 billion.
• D) $40 billion.

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Definitions:

Environmental Regulations

Laws and rules enforced by governments to regulate activities that impact the environment, aimed at reducing pollution and preserving natural resources.

Workplace Safety Regulations

Laws and guidelines designed to ensure the physical safety and health of employees within the workplace.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, and habits through various methods such as teaching, training, research, and discussion.

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services.