If the multiplier is 4 and real GDP increases by $520 billion, the increase in investment spending must have been
a. $110 billion.
b. $120 billion.
c. $130 billion.
d. $140 billion.
c
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An adverse supply shock, such as a reduced supply of raw materials, would
A) increase the marginal product of labor. B) decrease the marginal product of labor. C) decrease the marginal product of capital, but have no effect on the marginal product of labor. D) not affect the marginal product of labor.
When negative externalities are present in a market,
a. producers will be affected but consumers will not. b. producers will supply too much of the product. c. demand will be too high. d. the market will still maximize total benefits.
Discuss Amazon’s barriers of entry over others trying to enter the market
What will be an ideal response?
A single-period duopoly firm can choose output level A or B. The firm decides it will produce level A regardless of what the other firm produces. This decision may occur because
A) producing the output level A is a dominant strategy. B) this firm has simply decided to always produce at level A. C) Both A and B are possible. D) None of the above.