Multiple Choice
If government expenditure rises by $54 billion and the multiplier in the economy is 1.5, then real GDP_____, and the IS curve shifts to the_____.
A) rises by $81 billion; right
B) rises by $36 billion; right
C) falls by $36 billion; left
D) falls by $54 billion; left
Correct Answer:
Verified
Correct Answer:
Verified
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