Solved

Exhibit 9-1 GDP and Consumption Data as Shown in Exhibit

Question 129

Multiple Choice

Exhibit 9-1 GDP and consumption data Exhibit 9-1 GDP and consumption data As shown in Exhibit 9-1, if investment is $0.5 trillion, government spending is $1 trillion, net exports are - $0.5 trillion, and GDP is $7 trillion, then GDP will: A) remain unchanged. B) increase by $2 trillion. C) decrease by $2 trillion. D) increase by $4 trillion. E) decrease by $4 trillion. As shown in Exhibit 9-1, if investment is $0.5 trillion, government spending is $1 trillion, net exports are - $0.5 trillion, and GDP is $7 trillion, then GDP will:


A) remain unchanged.
B) increase by $2 trillion.
C) decrease by $2 trillion.
D) increase by $4 trillion.
E) decrease by $4 trillion.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q43: The sum of consumption (C), investment (I),

Q46: Assume that an economy's real GDP multiplier

Q88: Using the aggregate expenditure-output model, assume the

Q103: If the marginal propensity to save (MPS)

Q126: Exhibit 9-7 Keynesian aggregate-expenditures model <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"

Q127: A recessionary gap is the amount that

Q131: A change in real GDP divided by

Q133: Use the aggregate expenditures model and assume

Q134: Superhighways, public housing facilities, and defense projects

Q167: When the MPC gets smaller, the spending