Figure 23-4 -Refer to Figure 23-4. Potential GDP Equals $500 Billion. the Equals

question 42

Multiple Choice

Figure 23-4

-Refer to Figure 23-4. Potential GDP equals $500 billion. The economy is currently producing GDP₁ which is equal to $450 billion. If the MPC is 0.8,then how much must autonomous spending change for the economy to move to potential GDP?

• A) -$40 billion
• B) -$10 billion
• C) $10 billion
• D) $40 billion

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Definitions:

Skeletal Muscle

A type of striated muscle tissue that is attached to bones and is responsible for voluntary movements in the body.

Smooth Muscle

Involuntary, non-striated muscle found in walls of internal organs and blood vessels, controlling their movements and flow.

Lymph Movement

The process whereby lymph circulates throughout the lymphatic system, aiding in the removal of waste and the transportation of lymphocytes.

Lymph Vessels

A network of vessels that carry lymph, a clear fluid containing white blood cells and waste products, throughout the body.