If MPC = 0

question 183

Multiple Choice

If MPC = 0.9, equilibrium real GDP is $1,000, and full-employment real GDP is $2,000, then how much should government spending change to bring about full employment?

• A) +1,000.
• B) -100.
• C) +900.
• D) +100.
• E) -0.9.

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Definitions:

Generalization

A general statement or concept obtained by inference from specific cases.

Raskolnikov

A fictional character in Fyodor Dostoevsky's novel "Crime and Punishment," known for his complex psyche and moral dilemmas.

Crime And Punishment

A concept referring to the legal and societal mechanisms for dealing with acts deemed harmful or unacceptable, involving the imposition of penalties.

Critical Thought

The objective analysis and evaluation of an issue in order to form a judgment.