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ehidna [41]
3 years ago
11

Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. Als

o assume that the economy's current level of output is $1,900 and, at the price level of 100, current aggregate demand is $1,850. If the government moves the economy back to the full-employment level of output by increasing government purchases by $30, then the MPC equals
a. 0.8.
b. 0.75.
c. 0.6.
d. 0.5.
Business
1 answer:
marta [7]3 years ago
3 0

Answer:

a. 0.8

Explanation:

In economics the MPC is the marginal propensity to consume. This percentage is usually multiplied by the disposable income to figure out how much money people in an economy will spend.

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<u>Explanation:</u>

First, remember that the difference between <em>normative and positive economic analysis</em> is that;

Normative analysis take a somewhat neutral view by stating how the world should be. While

The Positive analysis states the facts. That is, it describes the world as it is.

<u> Thus, a </u><u>Normative analysis</u><u> of the consequence of minimum​ wage would be the following statements:</u>

c. In some cities such as San Francisco and New​ York, it would be impossible for low−skilled workers to live comfortably in the city without minimum wage laws.

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2 years ago
Irene wants to start a business selling t-shirts. irene's top priority is that she alone has complete control over management de
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3 years ago
A company exhibits strategic intent when ______.
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Henry, Bekah, and Marcella are on the five-member Benefits Task Force that is researching options for the new benefits package.
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