Autonomous Planned Spending in a Country Rises by $60 Billion

question 76

Multiple Choice

Autonomous planned spending in a country rises by $60 billion when its MPC = 2/3. How much will the equilibrium level of real GDP change according to the aggregate expenditures model with the full potential multiplier effect?

• A) It will increase by $120 billion.
• B) It will decrease by $90 billion.
• C) It will increase by $180 billion.
• D) There will be no change in equilibrium real national income.

Understand the concept of controlled drinking and the debate around it.

Identify the consequences and social factors associated with alcohol use and abuse.

Recognize the influence of cultural, socioeconomic, and psychological factors on drinking patterns.

Describe the history and outcomes of the temperance movement and Prohibition.

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