Exhibit 15-3 Aggregate Demand and Supply Model

question 107

Multiple Choice

Exhibit 15-3 Aggregate demand and supply model

-Suppose the economy in Exhibit 15-3 is in equilibrium at point E₁ and the marginal propensity to consume (MPC) is 0.80.Following Keynesian economics,to restore full employment,the government should increase its spending by:

• A) $200 billion.
• B) $250 billion.
• C) $500 billion.
• D) $1 trillion.

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Definitions:

Data Bus

Multiplex backbone consisting of a twisted wire pair.

Non-Dedicated Wire

A wire within an electrical system that is not reserved for a single specific use or function.

Acid Tanker

A specialized tank truck designed for transporting acidic substances safely, featuring materials and construction that resist corrosion and damage from acids.

Stainless Steel

A corrosion-resistant alloy steel containing chromium, used in a wide variety of applications for its durability and appearance.