If the government spending multiplier is 10 and government purchases decrease by $20 billion, output will decrease by
A. $2 billion.
B. $20 billion.
C. $40 billion.
D. $200 billion.
Answer: D
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The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from all 15 sodas is
A) $15.00. B) $22.50. C) $11.25. D) $8.00. E) $1.50.
Which of the following statements is true?
A) If the actual unemployment rate is currently 5% and the natural unemployment rate is 5%, then the economy is operating at full-employment. B) The labor force participation rate is equal to the civilian noninstitutional population divided by the civilian labor force. C) A discouraged worker is counted as an unemployed worker. D) a and c E) a, b, and c
Suppose a country, whose production and consumption of coffee is large relative to the world market, has just entered the global market. If the country is a net exporter of coffee, we would expect:
A. a decrease in world price, and increase in world quantity of coffee. B. an increase in both world price and quantity of coffee. C. an increase in world price and decrease in world quantity of coffee. D. a decrease in both world price and quantity of coffee.
In the United Sates, the average annual rate of growth of real wages was fastest in the period:
A. 1960-1973. B. 1960-1995. C. 1973-1995. D. 1996-2010.