Suppose an Initial Increase in Government Expenditure Increases Output by $50,000.If

question 74

Multiple Choice

Suppose an initial increase in government expenditure increases output by $50,000.If the size of the multiplier is 2.5,the size of the initial increase in government expenditure was:

• A)$25,000.
• B)$20,000.
• C)$12,5000.
• D)$1250.
• E)$30,000.

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Definitions:

Perceptions

The process of interpreting and understanding sensory information, which influences how individuals make sense of the world around them.

Personality

Personality encompasses the unique combination of emotional, attitudinal, and behavioral response patterns of an individual.

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Factors or situations that have the potential to diminish, challenge, or undermine an individual's or group's influence or control.

Organizational Development

A systematic approach to improving the effectiveness, efficiency, and health of an organization through planned interventions in the organization's processes, using behavioral science knowledge.