If government spending increased by $200 billion and the MPC within the economy was 0.9, what would be the total impact on real GDP?
a. $180 billion increase
b. $222 billion increase
c. $380 billion increase
d. $2.0 trillion increase
d
You might also like to view...
Which of the following statements concerning the supply of labor is true?
a. The supply of labor is determined by the prevailing wage rate. b. The labor supply curve is downward sloping. c. The wage rate has no effect on the supply of labor. d. None of these.
At relatively high levels of disposable income
A. both the APC and APS are high. B. both the APC and APS are low. C. the APC is high and the APS is low. D. the APC is low and the APS is high.
When the Fed lowered the discount rate in late 2008, the action was ultimately designed to:
A. decrease the monetary base. B. increase the money supply. C. increase the prime rate. D. increase the reserve requirement.
If Iraq were to become a stable oil producing friend of the U.S., this would likely
A. decrease aggregate demand. B. increase aggregate supply. C. decrease aggregate supply. D. increase aggregate demand.