If Short-Run Equilibrium Output Equals 10,000, the Income-Expenditure Multiplier Equals

question 71

Multiple Choice

If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the mpc equals 0.8, and potential output (Y*) equals 9,000, then transfers must be ________ by approximately ________ to eliminate any output gap.

• A)decreased; 250
• B)decreased; 200
• C)increased; 250
• D)increased; 200

Identify the causes and consequences of changes in income inequality over recent decades.

Understand how technological change affects income distribution and the demand for skilled labor.

Understand the concept of income inequality and factors contributing to its increase or decrease.

Identify and describe the various welfare programs in the United States, including their funding and purpose.

---

Definitions:

Achievement Motivation

The drive or desire to accomplish goals or meet certain standards of excellence.

Interviewers' Preconceptions

Biases or pre-formed opinions that interviewers may hold, potentially influencing their judgment of candidates.

Manipulative Flattery

involves insincere praise used to influence or control another person's behavior for one's own advantage.

Polite Manners

Social behaviors that are considered respectful and considerate toward others, often prescribed by cultural norms.