If government spending increased by $100 billion and the MPS within the economy was 0.25, what would be the total impact on real GDP?
a. $25 billion increase
b. $75 billion increase
c. $133 billion increase
d. $400 billion increase
d
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Fashion trends are a nonprice determinant for demand because
A) they cause a movement along the demand curve. B) they influence people's tastes and preferences in clothing. C) they change the supply of accessories. D) they do not affect demand.
The two basic ways to define money are
A) the transactions approach and the fiduciary approach. B) the transactions approach and the M1 approach. C) the transactions approach and the liquidity approach. D) the liquidity approach and the store of value approach.
Which of the following statements best describes the effects of rapid movements in exchange rates?
a. Rapid movements from a weak to a strong exchange rate may cripple a country's export industries, while rapid movements from a strong to a weak exchange rate may cripple its banking sector. b. Rapid movements from a weak to a strong exchange rate may cripple a country's banking sector, while rapid movements from a strong to a weak exchange rate may cripple its export industries. c. Rapid movements from a weak to a strong exchange rate may cripple a country's export industries, while rapid movements from a strong to a weak exchange rate may cripple its import industries. d. Rapid movements from a weak to a strong exchange rate may cripple a country's import industries, while rapid movements from a strong to a weak exchange rate may cripple its banking sector.
An increase in workers' wealth causes
a. the supply curve of labor to shift to the right b. the supply curve of labor to shift to the left c. the supply curve of labor to stay the same d. an upward movement along the supply curve of labor e. a downward movement along the supply curve of labor