If Net Exports Increase by 250 and the Mpc Is

question 76

Multiple Choice

If net exports increase by 250 and the mpc is 0.75,equilibrium aggregate output increases by

• A)250.
• B)500.
• C)750.
• D)1,000.

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Definitions:

Margin Of Safety

The difference between actual sales and sales at the break-even point, providing a cushion that measures the business's ability to withstand sales fluctuations.

Current Sales

The total revenue generated from goods or services sold by a company during the current period.

Break-Even Sales

The amount of revenue required to cover both the fixed and variable costs of a business, indicating the point at which profit starts to be generated.

Margin Of Safety

The difference between actual sales and break-even sales, indicating the amount by which sales can drop before losses begin.