An Economy Has a Fixed Price Level, No Imports, and No

question 33

Multiple Choice

An economy has a fixed price level, no imports, and no income taxes. MPC is 0.5 and real GDP is $300 billion. Businesses increase investment by $10 billion. The new level of real GDP is

• A)$320 billion.
• B)$20 billion.
• C)$5 billion.
• D)$305 billion.
• E)$300 billion.

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Definitions:

Place Utility

Refers to the increased value that is added to goods by having them available at a location where they are wanted by consumers.

Product Available

The state of having goods or services ready for sale or distribution to consumers.

Marketing Plan

A comprehensive document that outlines a company's advertising and marketing efforts for the coming period, detailing strategies to reach target markets.

Specific Activities

Particular tasks or operations that are designed to achieve certain objectives within a project or process.