If investment spending decreases by $500 billion and if MPC = 0.6,
a. equilibrium GDP will rise by $1,250 billion
b. equilibrium GDP will fall by $500 billion
c. equilibrium GDP will fall by $1,250 billion
d. equilibrium GDP will rise by $500 billion
e. nothing will happen in the short run
C
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Comment on how extractive institutions affect:
a) the return-to-entrepreneurship schedule. b) the opportunity cost of entrepreneurship schedule. What will be an ideal response?
The economic way of thinking would approach the question "Is this industry competitive?" by
A) counting the number of firms in the industry. B) comparing the ratio of prices to costs across the industry. C) assessing the freedom of entry into the industry. D) evaluating the actual structure of the industry to the competitive standards articulated in antitrust legislation.
On a straight line demand curve, total revenue is the same at every point on the demand curve.
Answer the following statement true (T) or false (F)
Changes in production functions are associated with changes in
A. the levels of costs. B. the level of output. C. technology. D. demand.