Econia's Real GDP Is $600 Billion

question 52

Multiple Choice

Econia's real GDP is $600 billion. Full-employment real GDP is $900 billion. The MPC = .8. If the full multiplier effect occurs, which of the following policies would move the economy to a full-employment equilibrium?

• A) Increase government purchases by $50 billion.
• B) Increase government purchases by $60 billion.
• C) Decrease government purchases by $80 billion.
• D) Decrease government purchases by $240 billion.

Learn about the importance of the corpus callosum in connecting the cerebral hemispheres and facilitating interhemispheric communication.

Recognize the role of association areas in integrating sensory inputs and directing motor outputs.

Understand the roles and functions of the nervous system.

Comprehend the basics of neurochemistry and the role of neurotransmitters.

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Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Retirement Income

The total income a person receives after retiring from work, which can come from pensions, savings, investments, and social security benefits.

Compounded Semi-Annually

Interest added to the principal of a deposit or loan every six months, affecting total interest earned or paid.

Periodic Interest Rate

The interest rate applied to a loan or savings account over a specific period of time, often monthly or annually.