Scenario 24-2

question 382

Multiple Choice

Scenario 24-2.The following facts apply to a small,imaginary economy.
• Consumption spending is $5,200 when income is $8,000.
• Consumption spending is $5,536 when income is $8,400.
-Refer to Scenario 24-2.For this economy,an initial increase of $500 in government purchases translates into a

• A) $1,428.57 increase in aggregate demand in the absence of the crowding-out effect.
• B) $3,125.00 increase in aggregate demand in the absence of the crowding-out effect.
• C) $1,428.57 increase in aggregate demand when the crowding-out effect is taken into account.
• D) $3,125.00 increase in aggregate demand when the crowding-out effect is taken into account.

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Definitions:

Public-Policy Exception

A legal doctrine that prevents employers from terminating employees if the dismissal contravenes public policy or law.

Realistic Job Previews

An employment tool used to provide potential employees with a realistic view of what a job entails, including both positive and negative aspects.

Documentation

The act of creating, maintaining, and safeguarding records and documents relevant to an organization’s operations, transactions, or procedures.

Mergers And Acquisitions

The process by which companies are combined or bought out, aimed at increasing market share, diversifying, or achieving other strategic goals.