Suppose That the MPC Is

question 216

Multiple Choice

Suppose that the MPC is .60 and there is no investment accelerator or crowding- out effects.If government expenditures increase $20 billion,aggregate demand

• A)shifts right $80 billion.
• B)shifts right $50 billion.
• C)shifts right $32 billion.
• D)None of the above is correct.

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Definitions:

Employer's Ability

An organization's capacity to meet its obligations, including paying salaries, providing benefits, and maintaining a safe work environment.

Salaried Employee

An employee who is paid a fixed salary rather than an hourly wage, typically receiving payment on a monthly or biweekly basis.

Piece-Rated Employee

A worker whose pay is based on the number of items produced or tasks completed, rather than time spent on the job.

Directly Compensated Employee

A worker who receives payment in the form of wages, salary, or other direct payments for their job.