Assume That in the Economy of Utrea,the MPC Is 0

question 19

Essay

Assume that in the economy of Utrea,the MPC is 0.8 and the multiplier is 3 and that both government spending and autonomous taxes are increased by $40.In what direction and by how much will equilibrium GDP change?

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Definitions:

Theoretical Perspective

A specific point of view in sociology and other sciences, offering a set of assumptions about the way societies or other systems work.

Functionalist

Pertaining to the perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability.

MarxIST-Feminist

A theoretical approach combining Marxist and feminist theories to examine the ways in which women are oppressed through systems of capitalism and patriarchal structures.

Constructivist

Relating to an educational philosophy that argues learners construct knowledge through their experiences and interactions with the world.