Assume the current equilibrium level of income is $200 billion as compared to the full-employment income level of $240 billion. If the MPC is .625, what change in aggregate expenditures is needed to achieve full employment?
A. A decrease of $12 billion.
B. An increase of $25 billion.
C. An increase of $10 billion.
D. An increase of $15 billion.
D. An increase of $15 billion.
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It can be argued that the minimum jobs proposal is preferable to a minimum wage law because:
a. it provides more job opportunities to women. b. it cannot be overturned by the federal government. c. it puts a floor on the wage as well as on the nature of the job. d. it applies to students and non-students.
The difference between the gross public debt and the net public debt is
A. the sum of all previously accumulated government budget deficits and surpluses. B. all private-sector borrowing from private sources. C. the sum of all previously issued U.S. government securities that have been purchased by foreign residents. D. borrowing of government agencies from other government agencies within the nation.