If Households Save $40 Billion Less at Each Level of Income

question 148

Multiple Choice

If households save $40 billion less at each level of income and the marginal propensity to consume (MPC) is 0.8,the aggregate expenditure line will _____.

• A)intersect the 45-degree line at a real GDP of $40 billion
• B)shift upward by $40 billion
• C)shift downward by $40 billion
• D)shift upward by $200 billion because of the multiplier mechanism
• E)shift downward by $200 billion because of the multiplier mechanism

Describe learned helplessness and its implications on behavior.

Understand the process of shaping behavior through successive approximations.

Identify the concept of generalization and its role in conditioned responses.

Understand the impacts of aversive stimuli and their use in conditioning.

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Definitions:

Excise Tax

A specific tax levied on the sale of particular goods or services, such as alcohol and tobacco, usually aimed at discouraging consumption or raising revenue.

Cost Curve

A graphical representation that shows the relationship between the total cost incurred by a firm and the level of output produced.

Average Total Cost

The cost per unit of output, found by dividing the total cost (fixed plus variable) by the number of units produced.

Cigars

Rolled bundles of dried and fermented tobacco leaves designed to be smoked.