In a Short-Run Keynesian Model Where the Marginal Propensity to Consume

question 83

Multiple Choice

In a short-run Keynesian model where the marginal propensity to consume is 0.5, to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption, government purchases must be:

• A)increased by $1 billion.
• B)decreased by $1 billion.
• C)increased by $0.5 billion.
• D)increased by $2 billion.

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Definitions:

Self-Esteem

An individual's overall subjective evaluation of their own worth or value.

Job Performance

The level of effectiveness and efficiency with which an individual fulfills their job responsibilities and duties.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driven by needs, desires, and ambitions.

Self-Esteem

A person's overall subjective emotional evaluation of their own worth.