If Aggregate Expenditures Rise by $200 Billion and Real GDP

question 30

True/False

If aggregate expenditures rise by $200 billion and real GDP consequently rises by $500 billion, then the MPC in the economy must be 0.4.

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Definitions:

Auxiliary Start

A method or device used to assist in the starting of engines or motors, providing initial power or support to complement the main starting mechanism.

Switch Assembly

A group of switches combined into a single unit to control various functions or circuits.

Rotor

The rotating part of an electric motor or generator, which turns due to interaction with the magnetic field.

Standard Direction

A reference direction considered as a basis for measurement or operation, typically referring to the flow of current or rotation.