If the MPC Is

question 8

Multiple Choice

If the MPC is .50 and the equilibrium GDP is $40 billion below the full-employment GDP,then the size of the recessionary expenditure gap is:

• A) $40 billion.
• B) $20 billion.
• C) $60 billion.
• D) $80 billion.

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Definitions:

Filing Joint Return

The tax filing status used by married couples who choose to combine their income and report it on one tax return.

Qualifying Widow(er)

A tax filing status available to a widowed individual with dependents, providing eligibility for standard deduction and tax rates that are more favorable for a specific period following the spouse's death.

Qualifications

The skills, experience, and education required to perform a job or task, or criteria to receive a benefit.

File

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