If the MPC Is 0

question 109

Multiple Choice

If the MPC is 0.9,and the government cuts taxes by $400b,the overall effect on GDP will be:

• A)a decrease of $2,000b.
• B)an increase of $2,000b.
• C)a decrease of $3,600b.
• D)an increase of $3,600b.

---

Definitions:

Succession Planning

The process of identifying and preparing suitable employees through mentoring and training to replace key players within an organization when they leave.

Trend Analysis

A quantitative approach to forecasting labour demand based on an organizational index such as sales.

Replacement Charts

Listings of current jobholders and people who are potential replacements if an opening occurs

Attrition

The gradual reduction in workforce through normal means, such as retirement or voluntary resignation, without actively replacing those positions.