If the MPC were .5, what change in government spending (in billions of dollars) would be required to cause the equilibrium level of GDP to rise by 100?

A. An increase of 20.
B. An increase of 50.
C. An increase of 100.
D. An increase of 200.


B. An increase of 50.

Economics

You might also like to view...

When a country continually adds more capital to its existing stock productivity will:

A. increase at a decreasing rate. B. increase at an increasing rate. C. decrease at a decreasing rate. D. decrease at an increasing rate.

Economics

If buyers and sellers in a certain market are price takers, then individually

a. they have no influence on market price. b. they have some influence on market price but that influence is limited. c. buyers will be able to find prices lower than those determined in the market. d. sellers will find it difficult to sell all they want to sell at the market price.

Economics

A real quantity is a quantity measured:

A. by the average quantity. B. using real prices. C. in terms of current dollar value. D. in physical terms.

Economics

The duration of unemployment tends to rise when

A. business activity goes into a downturn. B. people leave their jobs rather than lose their jobs. C. business activity starts back up after a long period of decline. D. the number of entrants exceeds the number of reentrants.

Economics