Multiple Choice
If MPC = 0.9, equilibrium real GDP is $1,000, and full-employment real GDP is $2,000, then how much should government spending change to bring about full employment?
A) +1,000.
B) -100.
C) +900.
D) +100.
E) -0.9.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q80: If the marginal propensity to save (MPS)
Q178: The change in consumption divided by a
Q179: It is inflationary for government to increase
Q180: Appropriate supply-side policy (or policies) during a
Q181: Which of the following would be an
Q182: The government can reduce unemployment or reduce
Q184: When households' marginal propensity to consume (MPC)
Q185: Supply-side economics calls for:<br>A) lower taxes on
Q186: The ratio of the change in GDP
Q188: The marginal propensity to consume measures the