Assume That the Marginal Propensity to Consume Is 0

question 252

Multiple Choice

Assume that the marginal propensity to consume is 0.8 and potential output is $800 billion. If real GDP is $700 billion:

• A)there is an inflationary gap.
• B)there is a recessionary gap.
• C)the economy is in long-run equilibrium.
• D)government transfers should be decreased.

Recognize the principles of peacemaking criminology and its focus on nonviolence and addressing social injustice.

Understand the concept and effectiveness of restorative justice as an approach within the criminal justice system.

Understand the impact of external stressors on relationships and how they vary between acute and chronic stressors.

Recognize how social support functions as a resource for coping with stress in relationships.

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Definitions:

IQ

An abbreviation for Intelligence Quotient, a measure of a person's cognitive abilities and potential, compared against a normative population scale.

SAT Score

A standardized test score used predominantly in the United States for college admissions, measuring critical reading, writing, and mathematical skills.

Ivy League

A prestigious group of eight private universities in the northeastern United States known for high academic standards and significant history.

Tracking

Involves sorting students into high-ability, middle-ability, and low-ability classes based on the results of IQ and other tests.