Suppose the government in this economy decides to decrease government purchases by $300 billion. The decrease in government purchases will lead to a decrease in income, generating an initial change in consumption equal to:

A) -$1,000 billion
B) -$90 billion
C) -$210 billion
D) -$500 billion
E) -$105 billion

This decreases income yet again, causing a second change in consumption equal to:

A) -$1,000 billion
B) -$90 billion
C) -$210 billion
D) -$500 billion
E) -$107 billion

The total change in demand resulting from the initial change in government spending is:

A) -$0.6 trillion
B) -$0.7 trillion
C) -$2.7 trillion
D) -$1 trillion

initial change in consumption  =  $210 billion

correct option C) -$210 billion

Explanation:

given data

purchases amount = $300 billion

we consider here marginal propensity to consume is =  0.7

and oversimplified multiplier = 3.33

solution

we get here  initial change in consumption tat is

initial change in consumption  is = MPC × purchases amount 1

initial change in consumption  = 0.7 ×  $300  

initial change in consumption  =  $210 billion

and

here  decreases income again causing of change in consumption that si decreases income  =  initial change × MPC 2

decreases income  = $210 billion  × 0.7

decreases income  = $147 billion

and

now we know total change in demand by initial change that is

total change in demand = oversimplified multiplier × purchases amount

total change in demand = $300 × 3.33

total change in demand = $1 trillion

b. condominum i think

b. take periodic breaks and alternate between tasks.  

will increase work efficiency, and avoid health issues.