Multiple Choice
The multiplier is 5.0 and autonomous expenditure increases by $30 billion. If potential real GDP is unaffected, in the long run, equilibrium real GDP will
A) increase by $50 billion.
B) increase by more than $50 billion.
C) increase by less than $50 billion.
D) not change.
Correct Answer:
Verified
Correct Answer:
Verified
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