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    Principles of Economics Study Set 8
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    Exam 37: Deriving the Formula for the Keynesian Multiplier and the Forward-Looking Consumption Model
  5. Question
    Which of the Following Measures the Change of Real GDP
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Which of the Following Measures the Change of Real GDP

Question 10

Question 10

Multiple Choice

Which of the following measures the change of real GDP in the short run as a result of a an increase in government purchases?


A) Spending balance
B) Potential GDP
C) Life-cycle model
D) Keynesian multiplier
E) 45-degree line

Correct Answer:

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