If Equilibrium Income Is $500 Billion, MPC = 0

question 110

Multiple Choice

If equilibrium income is $500 billion, MPC = 0.8, MPI = 0.2 and autonomous government spending increases by $20 billion, the new equilibrium income will be _____.

• A)$600 billion.
• B)$550 billion.
• C)$525 billion.
• D)$520 billion.
• E)$500 billion.

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Definitions:

Urine Cultures

Laboratory tests that involve the growth of microorganisms present in the urine to identify urinary tract infections (UTIs) and determine the appropriate antimicrobial treatment.

MRSA-Positive Wound

A wound infected with Methicillin-resistant Staphylococcus aureus, a type of bacteria resistant to many antibiotics, making it difficult to treat.

Medical Waste Disposal

The process of handling, treating, and disposing of waste generated by healthcare activities in a manner that minimizes its harmful impact on humans and the environment.

Gauze Dressings

A common medical supply made of cotton or synthetic fibers used to protect wounds, absorb fluids, and prevent infection.