Which of the following statements is incorrect? a) other things unchanged, a tax reduction of $10 billion will increase the equilibrium gdp by $25 billion when the mps is .4. b) given the economy's mps, a $15 billion reduction in government spending will reduce the equilibrium gdp by more than would a $15 billion increase in taxes. c) a government surplus is anti-inflationary; a government deficit is expansionary. d) if the mpc is .8 and gdp has declined by $40 billion, this was caused by a decline in aggregate expenditures of $8 billion.

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above