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
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From the Civil War up to 1914, the United States adhered to a
A) gold standard. B) silver standard. C) bimetallic standard. D) bronze standard. E) copper standard.
Technological change has played a major role in increasing competition in recent years
a. True b. False
As a person's wealth increases we would expect the demand for money to:
A. decrease. B. not change; money demand does not vary with wealth, only with income. C. increase dollar for dollar with wealth. D. increase but at a rate less than dollar for dollar.
which of the following is true of taxes
What will be an ideal response?