Exhibit 15-7  Aggregate Demand and Supply Model Suppose the Economy

question 158

Multiple Choice

Exhibit 15-7  Aggregate demand and supply model Suppose the economy in Exhibit 15-7 is in equilibrium at point E₁ and the marginal propensity to consumer ( MPC ) is 0.75. Following Keynesian economics, to lower the price level from 170 to 150, the government should reduce its spending by:

• A) $20 billion.
• B) $100 billion.
• C) $133 billion.
• D) $400 billion.

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Definitions:

Attrition

Loss of employees due to their voluntary departures from the firm through resignation, retirement, or death.

Normal Separation

The voluntary termination of employment by an employee, often due to retirement, resignation for personal reasons, or a new job opportunity.

Employees

Individuals who work part-time or full-time under a contract of employment, contributing labor and expertise to an employer in return for wages.

Human Resources Talent Pool

A database or inventory of potential candidates that an organization can draw upon to fill vacancies.