If autonomous investment decreases by $60 billion, equilibrium real GDP demanded will
What will be an ideal response?
decrease by $60 billion/MPS
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Refer to Scenario 9.1. The dominant strategy for Sheb is to place ________ sheep on the commons
A) 4 B) 5 C) Sheb's dominant strategy depends on how man sheep Monty places on the commons. D) Sheb has no dominant strategy.
An event is productive as long as
A) it is incurred without any opportunity cost. B) it increases wealth. C) the value of the inputs exactly equals the value of the output. D) it creates a new material object. E) all of the above are true.
The sum of money spent by a person to purchase a new home is considered as a part of investment spending
a. True b. False Indicate whether the statement is true or false
Economists who criticize trade adjustment assistance argue that:
A. it only benefits a very small fraction of all unemployed workers. B. money spent on the program overstimulates aggregate demand and threatens to cause inflation. C. benefits are too low to provide unemployed workers with a livable wage. D. it distorts patterns of foreign trade, reducing the gains from trade.