Assume the MPC Is 0

question 103

Multiple Choice

Assume the MPC is 0.8.Assuming only the multiplier effect matters,a decrease in government purchases of $100 billion will shift the aggregate demand curve to the

• A)left by $180 billion.
• B)left by $500 billion.
• C)right by $180 billion.
• D)right by $400 billion.

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Definitions:

Ounces

A unit of weight in the avoirdupois system equal to 1/16th of a pound or approximately 28.35 grams.

Quarts

A unit of liquid volume in the US customary system, equal to two pints, or about 0.946 liters.

Dimensional-analysis

A method used in physics and engineering to analyze the relationships between different physical quantities by identifying their base dimensions.

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The earnings or compensation received by Registered Nurses, often varying based on location, experience, and specialty.