If an economy experiences a $0.8 trillion increase in investment resulting in an increase in real GDP from $10 trillion to $12 trillion,
a. what is the change in equilibrium expenditure?
b. what is the change in autonomous expenditure?
c. what is the multiplier?
d. how would an increase in the marginal tax rate effect the multiplier?
a. The change in equilibrium expenditure is $2.0 trillion.
b. The change in autonomous expenditure is $0.8 trillion.
c. The multiplier is 2.5.
d. An increase in the marginal tax rate decreases the size of the multiplier.
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Recessions occur at irregular intervals and are almost impossible to predict with much accuracy
a. True b. False Indicate whether the statement is true or false
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Indicate whether the statement is true or false