Assume the Economy Is in Recession and Real GDP Is

question 98

Multiple Choice

Assume the economy is in recession and real GDP is below full employment. The marginal propensity to consume (MPC) is 0.50, and the government follows Keynesian economics by using expansionary fiscal policy to increase aggregate demand (total spending) . If an increase of $1,000 billion aggregate demand can restore full employment, the government should:

• A) increase spending by $250 billion.
• B) decrease spending by $500 billion.
• C) increase spending by $1,000 billion.
• D) increase spending by $500 billion.

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Definitions:

Public Health Nursing

A specialty practice within nursing that focuses on the protection and promotion of the health of populations, rather than individual patients, through community assessment and interventions.

Home Health Nursing

A field of nursing care that is provided to patients in their homes, focusing on their recovery, independence, and chronic condition management.

The Home Setting

Refers to the environment of an individual's residence, where personal, family, or household life occurs, often considered in contexts like healthcare delivery or lifestyle studies.

Central Venous Access Device

A medical device inserted into a large vein, typically in the neck, chest, or arm, used to administer medication, fluids, blood products, or nutrition, and to obtain blood tests.