Exhibit 20A-4 Macro AD/AS Model

question 10

Multiple Choice

Exhibit 20A-4 Macro AD/AS Model

-As shown in Exhibit 20A-4,assume the marginal propensity to consume MPC equals 0.75.Using discretionary fiscal policy,federal government spending should be ____ in order to restore the economy from E₁ to full employment.

• A) increased by $.25 trillion
• B) decreased by $.25 trillion
• C) decreased by $2 trillion
• D) increased by $2 trillion
• E) increased by $1 trillion

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Definitions:

Parental Expectations

The beliefs or hopes parents have about their children's behavior, achievements, or values.

Conduct Disorder

A mental health disorder diagnosed in childhood or adolescence characterized by a long-term pattern of disregard for others' rights, social norms, and rules.

Sympathetic Arousal

The activation of the sympathetic nervous system, leading to physiological changes such as increased heart rate and blood pressure, often in response to stress or excitement.

Sexual Activity

Behaviors involving the pursuit of pleasure or procreation, often encompassing a wide range of acts between individuals.