If MPC = 0.8 and the economy is in equilibrium $500 below full-employment equilibrium, how much should government spending change to achieve full employment?

a. ?100.
b. +80.
c. ?80.
d. +500.
e. +100.


e

Economics

You might also like to view...

Governments grant patents to encourage

A) low prices. B) firms to form public enterprises. C) research and development on new products. D) competition.

Economics

In the 1980s, the federal government gradually ________ interest-rate ceiling on deposits at commercial banks and thrift institutions, which has ________ the costs of inflation

A) imposed, lowered B) imposed, reduced C) lifted, lowered D) lifted, reduced

Economics

The Board of Governors is made up of experts in:

A. fiscal policy. B. public policy. C. monetary policy. D. information systems

Economics

Which of the following would disqualify a worker from being counted as unemployed by the U.S. Department of Labor?

a. being a stay-at-home mom b. reentering the workforce after an absence c. actively looking for work d. being 17 years old and in school

Economics