The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 1

Multiple Choice

The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy:
∙ marginal propensity to consume (mpc) = 0.75
∙ net tax rate (t) = 0.20
∙ no foreign trade
∙ fixed price level
∙ all expenditure and income figures are in billions of dollars. FIGURE 22-2
-Refer to Figure 22-2.What is the value of the multiplier in this economy?

• A)1.33
• B)1.67
• C)2.0
• D)2.5
• E)6.67

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Labour Standards

refers to the set of regulations and criteria that determine the minimum safe and healthy conditions for workers in the workplace.

Historical Experience

The knowledge and insights gained from past events and activities, which can inform future decisions and strategies.

Time Study

A method used to determine the time required for an employee to complete a given job.

Sample Size

Denotes the number of subjects or units chosen from a population for the purpose of statistical analysis.