If an Increase in Autonomous Consumption Spending of $15 Million

question 33

Multiple Choice

If an increase in autonomous consumption spending of $15 million results in a $60 million increase in equilibrium real GDP, then the MPC is:

• A)0.5.
• B)0.9.
• C)0.8.
• D)0.75.

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Definitions:

Process Innovation

The development and use of new or improved production or distribution methods.

Extracting Copper

The process of retrieving copper from its ores using techniques like mining, crushing, and refining.

First Discovery

The initial identification or observation of a phenomenon, principle, or resource, marking a seminal moment in the expansion of knowledge or exploration.

Invention

The creation of a new product, process, or method that has not existed before, often protected by patents.