Assume that an economy's real GDP multiplier is 4 . If this economy is in equilibrium at $2,000 billion, then which one of the following actions will bring it to a full employment equilibrium of $1,500 billion?

a. $500 billion spending cut.
b. $500 billion spending increase.
c. $125 billion spending cut.
d. $125 billion spending increase.
e. $2,000 billion spending cut.


c

Economics

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A) restricting international trade. B) encouraging higher rates of saving. C) supporting more research and development. D) encouraging higher quality education.

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Economic surplus

A) is equal to the difference between consumer surplus and producer surplus. B) is equal to the sum of consumer surplus and producer surplus. C) does not exist when a competitive market is in equilibrium. D) is the difference between quantity demanded and quantity supplied when the market price for a product is greater than the equilibrium price.

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Optimal user fees are paid only by the consumers of the good or service produced.

A. True B. False C. Uncertain

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One thing that Keynesians and Monetarists agree about is

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Economics