The Ratio of the Increase in Equilibrium Real GDP to the Increase

question 297

Multiple Choice

The ratio of the increase in equilibrium real GDP to the increase in autonomous expenditure is called the

• A)MPC.
• B)multiplier.
• C)MPS.
• D)consumption function.

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale to consumers or other businesses.

Inefficently

Operating in a manner that does not maximize productivity or use resources in the best possible manner.

Taxes

Imperative monetary contributions or distinct types of taxation demanded from a taxpayer by a public authority to cover the costs of governmental functions and diverse public financial needs.

Incentives

Motivators or stimuli that encourage or promote certain behaviors or actions by offering rewards or benefits.