Assume an Economy with an Upward-Sloping Aggregate Supply Curve and an MPC

question 182

Multiple Choice

Assume an economy with an upward-sloping aggregate supply curve and an MPC of .80.An increase in investment spending of $50 billion will most likely increase total income by

• A)$200 billion.
• B)$40 billion.
• C)more than $200 billion.
• D)more than $50 billion but less than $250 billion.

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Definitions:

NASA

The National Aeronautics and Space Administration, a United States government agency responsible for the nation's civilian space program and for aeronautics and aerospace research.

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An occurrence in group dynamics where the preference for consensus or compliance leads to outcomes in decision-making that are unreasonable or ineffective.

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Getting a commitment from a person and then raising the cost of that commitment.