Vocab Page 4

Question 0

Marginal Propensity to import

Answer 0

Refers to the fraction of every new dollar of national income that is allocated to spend on imports

Question 1

Marginal Propensity to Save

Answer 1

Refers to the fraction of every new dollar of national income that is allocated to be saved

Question 2

Productivity

Answer 2

It refers to how well the inputs are being used to obtain the output

Question 3

Inputs

Answer 3

This refers to the various resources and commodities used in the production process

Question 4

Corporate Taxes

Answer 4

This is the money that is collected by the government from the business sector as a form of revenue

Question 5

Immigration

Answer 5

This refers to the number of people that are allowed to enter the country. This increases the supply of labor

Question 6

Expansionary Policy

Answer 6

A policy enacted by the government in order to reduce a RECESSIONARY GAP through the INCREASE of government spending and or taxes