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Exhibit 15-5  Aggregate Demand and Supply Model Suppose the Economy

question 14

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Exhibit 15-5  Aggregate demand and supply model Exhibit 15-5  Aggregate demand and supply model   Suppose the economy in Exhibit 15-5 is in equilibrium at point E<sub>1</sub> and the marginal propensity to consume (MPC)  is 0.75. Following Keynesian economics, the federal government can move the economy to point E<sub>2</sub> and reduce inflation by: A)  increasing government spending by $50 billion. B)  decreasing government spending by $6 billion. C)  decreasing government spending by $100 billion. D)  decreasing government spending by $50 billion. Suppose the economy in Exhibit 15-5 is in equilibrium at point E1 and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to point E2 and reduce inflation by:

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Definitions:

Gametic Preference

The selective mating behavior or mechanism resulting in the choice of specific gametes for fertilization.

Allopolyploidy

A form of polyploidy occurring when two different species mate to produce a hybrid with two different sets of chromosomes.

Flowering Plants

Plants that produce flowers as their reproductive structures, belonging to the angiosperm group, which includes a wide variety of plants from grasses to trees.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia, characterized by their ability to move, consume organic material, breathe oxygen, and reproduce sexually.

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