Suppose Aggregate Output Is Demand-Determined

question 71

Multiple Choice

Suppose aggregate output is demand-determined.If the business community decreases its planned investment expenditures by $4 billion,causing equilibrium national income to fall by $12 billion,the marginal propensity to spend must be

• A)1/3.
• B)1/2.
• C)2/3.
• D)4/5.
• E)3.

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Definitions:

Alternative Work Arrangements

Employment setups differing from traditional full-time, on-site jobs, such as telecommuting, flexible schedules, or part-time work.

Diverse Workforce

Refers to a workplace that includes employees with a wide range of characteristics, such as race, gender, age, cultural background, and more.

Changing Content

The alteration or modification of information, materials, or topics to adapt to new requirements or audiences.

Type A

A personality type characterized by competitiveness, self-criticism, time urgency, and a heightened response to stress.