Econia's Real GDP Is $700 Billion

question 51

Multiple Choice

Econia's real GDP is $700 billion. Full-employment real GDP is $900 billion. The MPC = .75. If the full multiplier effect occurs, which of the following policies would move the economy to a full-employment equilibrium?

• A) Decrease government purchases by $150 billion.
• B) Decrease taxes by $150 billion.
• C) Increase government purchases by $50 billion.
• D) Increase taxes by $50 billion.

Recognize the connection between gender roles, sexual orientation, and societal perceptions.

Explore the influence of gender-role socialization across cultures and eras.

Understand the relationship between inflation and unemployment as described by the Phillips curve.

Analyze the impact of monetary and fiscal policies on inflation and unemployment.

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Definitions:

Price Range

The difference between the highest and lowest selling prices of a good or service in a specific time period, indicative of market volatility or stability.

Mutual-Fund Performance

An assessment of how a mutual fund has achieved its investment objective over a set period, typically measured by changes in net asset value and investment returns.

Market Returns

The total return, including capital gains and dividends, from investing in financial markets over a specified period.

Historical Performance

Refers to the past financial results and operations of a company or investment, used to predict future performance.