Suppose the Price Level Is Fixed,the MPC Is

question 48

Multiple Choice

Suppose the price level is fixed,the MPC is .8,and the GDP gap is a negative $200 billion.To achieve full-employment output (exactly) ,government should:

• A) increase government expenditures by $200 billion.
• B) reduce taxes by $200 billion.
• C) increase government expenditures by $40 billion.
• D) reduce taxes by $160 billion.

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Definitions:

Low-Level Managers

Managers who operate at the lower tier of an organizational hierarchy, typically overseeing the direct performance of entry-level employees.

Organized Crime

Crime carried out by structured groups primarily engaged in illegal activities for profit.

Occupational Related

Pertaining to or connected with one's job or profession, especially in relation to health, safety, and well-being.

Respectable, Upper-Class

Pertains to individuals or groups considered high in social status, often admired for their wealth, education, or manners.