Suppose That the Level of GDP Increased by $100 Billion

question 128

Multiple Choice

Suppose that the level of GDP increased by $100 billion in an economy where the marginal propensity to consume is 0.5.The initial change in spending must have been:

• A)$100 billion.
• B)$50 billion.
• C)$500 billion.
• D)$5 billion.

---

Definitions:

Cognitive Functioning

The mental processes involved in perception, thinking, reasoning, and remembering that influence how an individual learns and understands the world.

Obsessional Thinking

A form of intrusive thought that is unwanted, persistent, and often linked to anxiety or OCD.

Intellectual Functioning

Refers to the cognitive capacities of an individual, including abilities such as reasoning, problem-solving, and learning.

Presenting Problem

The initial issue or concern as reported by a client or patient that leads them to seek professional help or counseling.