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

Understand the psychological rationalizations of white-collar and corporate offenders in justifying their actions.

Understand the reasons and conditions that facilitate white-collar deviance.

Identify common practices and types of corruption in the business world, both domestically and internationally.

Recognize the distinction between criminal and noncriminal forms of economic deviance related to high-status occupations.