Assume That There Is No Accelerator Affect

question 44

Multiple Choice

Assume that there is no accelerator affect.The MPC = 3/4.The government increases both expenditures and taxes by $600.The effect of taxes on aggregate demand is 3/4 the size of that created by government expenditures alone.The crowding out effect is 1/5 as strong as the combined effect of government expenditures and taxes on aggregate demand.How much does aggregate demand shift by?

• A)$1480
• B)$480
• C)$160
• D)None of the above is correct.

Examine the role of democracy in managing government size and debt.

Understand how the size of government affects economic growth through taxation and spending.

Analyze the changes in the size and function of government in the U.S. over the past century.

Understand the concept of opportunity cost and its implications in resource allocation and decision-making.

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Definitions:

Human Relations Approach

A management strategy focusing on the importance of interpersonal relationships, employee needs, and morale in the workplace.

Extrinsic Rewards

Physical or tangible rewards given to employees, such as money, benefits, or other compensation, that come from an external source.

Intrinsic Rewards

The personal satisfaction and enjoyment derived directly from engaging in an activity or completing a task.

Organizational Pay Systems

Structures and strategies employed by organizations to compensate employees, including salaries, benefits, bonuses, and other forms of payment.