If Investment Increases by $10 Billion and the Economy's MPC

question 89

Multiple Choice

If investment increases by $10 billion and the economy's MPC is .8,the aggregate demand curve will shift:

• A) leftward by $50 billion at each price level.
• B) rightward by $10 billion at each price level.
• C) rightward by $50 billion at each price level.
• D) leftward by $40 billion at each price level.

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Definitions:

Structural Functionalism

A sociological theory that sees society as a complex system whose parts work together to promote solidarity and stability.

Macro-Micro Continuum

This refers to the spectrum in sociology that connects large-scale social structures and processes (macro-level) to individual behaviors and interactions (micro-level).

Forms of Sociality

Refers to the various ways in which social interactions and relationships manifest within societies, ranging from individual and small group interactions to broader societal connections.

Microscopic

Pertaining to objects or processes that are too small to be seen with the naked eye, requiring a microscope for observation.