If the Gap Between the Actual Level of Output and the "Natural

question 46

Multiple Choice

If the gap between the actual level of output and the "natural real GDP" is 1000 and the marginal leakage rate is 0.5 then the simple Keynesian model suggests that the government could close the gap by

• A)increasing autonomous expenditures by 1000.
• B)increasing autonomous expenditures by 250.
• C)increasing autonomous expenditures by 500.
• D)decreasing taxes by 500.

---

Definitions:

Substantially Performed

A legal principle recognizing that a contract has been completed enough to warrant fulfillment despite minor deviations.

Contract Breach

An instance in which one party fails to fulfill its obligations under a contract, whether partially or entirely.

Complete Compensation

Total financial restitution provided to cover all losses and damages incurred.

Sarbanes-Oxley Act

A U.S. federal law established in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.