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    Macroeconomics Study Set 57
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    Exam 11: Aggregateexpenditures
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    If the Government Wishes to Increase GDP by $1,200 Billion
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If the Government Wishes to Increase GDP by $1,200 Billion

Question 22

Question 22

Multiple Choice

If the government wishes to increase GDP by $1,200 billion, and the MPC is 0.75, it should _______ its spending by _______ billion.


A) increase; $300
B) decrease; $300
C) increase; $900
D) decrease; $900

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