The equilibrium level of real GDP is $1,000 . the target level of real GDP is $1,250, and the marginal propensity to consume (MPC) is 0.60 . The target can be reached if government spending is:
a. increased by $60 billion.
b. increased by $100 billion.
c. increased by $250 billion.
d. held constant.
b
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X is exports, M is imports, T is net taxes, G is government expenditure, C is consumption expenditure, S is saving, and I is investment. The government sector balance is equal to
A) T - G. B) C + S + T. C) S - I. D) X - M.
Per capita real GDP is obtained by dividing real GDP by the number of people active in the labor force
a. True b. False Indicate whether the statement is true or false
If a good is a Giffen good, then
a. the supply curve is downward sloping. b. the demand curve is upward sloping. c. the demand curve is horizontal. d. there is no optimal level of consumption for the consumer.
When you have to give up one opportunity in order to choose another, the value of the opportunity that is not chosen is called the
A. opportunity cost. B. forgone value. C. opportunity price. D. choice equilibrium.