Multiple Choice
Suppose government purchases increase by $100 million in an economy,which leads to total output increasing by $500 million.The size of the multiplier is _____.
A) $400
B) 5
C) $500
D) 0.5
E) 50
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q28: A $0.2 trillion increase in government purchases
Q29: Which of the following are components of
Q30: The one-time tax cuts used by the
Q31: The exact change in equilibrium output due
Q32: Which of the following fiscal programs is
Q34: Lags in the approval and implementation of
Q35: Which of the following is an example
Q36: Fiscal policy focuses on manipulating _.<br>A)aggregate demand
Q37: To close a recessionary gap using fiscal
Q38: Discretionary fiscal policy is a policy that