Assume That the Marginal Propensity to Consume Is 0

question 158

Multiple Choice

Assume that the marginal propensity to consume is 0.8 and potential output is $800 billion. If GDP is $850 billion:

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

Recognize the importance and frequency of updating W-4 forms.

Understand the purpose and usual amounts kept in petty cash accounts.

Identify which positions are typically compensated through commission.

Comprehend the Fair Labor Standards Act's mandates for hourly employees.