Answer: The change will be $400 billion.
Explanation: The marginal propensity to consume (MPC) is used to explain that increase in consumption is as a result of increase in income.
To calculate how much the equilibrium real GDP will change:
STEP1: CALCULATE THE MULTIPLIERS
multipliers = 1 ÷ (1 - MPC)
Where MPC = 0.
Therefore;
Multipliers = 1 ÷ (1 - 0.5) = 1 ÷ 0.5
Multipliers = 2
STEP 2: CALCULATE HOW MUCH THE EQUILIBRIUM REAL GDP WILL CHANGE;
Multipliers × change in consumption spending
2 × $200 billion = $400 billion
Equilibrium real GDP will change with $400 billion
Answer:(E) Positive reinforcement
Explanation:
According to the given scenario, the positive reinforcement is one of the type of psychological behavior that helps in strengthening the behavior of the organisms.
The Option (1) is basically illustrating the concept of the positive reinforcement as Richard is spend his maximum time in the job and appropriate him when he perform well in the work.
The positive reinforcement is one of the type of operant conditioning in which it define the various types of new behavior and focuses on reducing the unwanted things.
Therefore, Option (E) is correct answer.
Answer:
The fixed costs are too high. The marginal cost generally represents variable costs and they might be very low, but if the fixed costs are simply too high, they will need to increase the price of the plane tickets in order to break even. The break even formula is calculated by dividing total fixed costs by marginal revenue (selling price - variable costs).
