Assume the Economy Is in Recession and Real GDP Is

question 172

Multiple Choice

Assume the economy is in recession and real GDP is below full employment. The marginal propensity to consume (MPC) is 0.75, and the government follows Keynesian economics by using expansionary fiscal policy to increase aggregate demand (total spending) . If an increase of $1,000 billion aggregate demand can restore full employment, the government should:

• A) increase spending by $250 billion.
• B) decrease spending by $750 billion.
• C) increase spending by $1,000 billion.
• D) increase spending by $750 billion.

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Definitions:

Health

A state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.

Crisis

A critical or intense point of difficulty, decision, or danger requiring immediate resolution or decision-making.

Patient's Anxiety

Refers to feelings of worry, nervousness, or unease that a patient experiences, often concerning an imminent event or something with an uncertain outcome, specifically in the context of healthcare.

Nurse Safety

The practices and procedures in place to ensure the physical and psychological well-being of nurses in their workplace.