If the MPC Is 0

question 25

Multiple Choice

If the MPC is 0.80, all taxes are lump-sum taxes, and the equilibrium GDP is $25 billion below the full-employment GDP, then the size of the recessionary expenditure gap is:

• A) $2 billion
• B) $4 billion
• C) $5 billion
• D) $6 billion

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Definitions:

WT ECU

A Weight Terminal Electronic Control Unit; a device designed for managing and monitoring weight-related data in vehicular and industrial systems.

Cruise Control

An electronic system that automatically controls the speed of a vehicle, maintaining a consistent speed as set by the driver.

Electrical Circuit

An electrical circuit is a pathway or loop that allows for the flow of electric current, consisting of sources, connections, and electrical components.

Data Link

A communication channel used for transferring digital data between devices or systems.