Multiple Choice
Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.80. A decrease in government spending of $1 billion would result in a decrease in GDP of:
A) $0.
B) $0.8 billion.
C) $1.0 billion.
D) $5.0 billion.
E) $8.0 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: An inflationary gap is the amount by
Q20: Which of the following options could be
Q32: Within the Keynesian aggregate expenditures model, which
Q53: Within the framework of the Keynesian Cross
Q66: When an economy is operating well below
Q67: In the aggregate expenditures model, if aggregate
Q68: In the Keynesian model, the larger the
Q143: Suppose equilibrium real GDP is currently at
Q151: An increase in government expenditures by $100
Q152: Use the aggregate expenditures model and assume