Assume the Current Equilibrium Level of Income Is $200 Billion

question 172

Multiple Choice

Assume the current equilibrium level of income is $200 billion as compared to the full-employment income level of $240 billion.If the MPC is .625,what change in aggregate expenditures is needed to achieve full employment?

• A) A decrease of $12 billion.
• B) An increase of $25 billion.
• C) An increase of $10 billion.
• D) An increase of $15 billion.

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Definitions:

Goal Difficulty

The extent to which a goal is challenging and requires effort to achieve, often influencing motivation and performance.

Goal Acceptance

The process wherein individuals agree with and commit to pursuing a specific goal, recognizing its value and importance.

Goal Commitment

The level of determination one has in achieving specific objectives, often seen as a driving force behind successful task completion and performance enhancement.

Motivational Benefits

Rewards or incentives that enhance an employee's drive and willingness to perform their duties effectively and efficiently.