Multiple Choice
Use the following Situation to answer the question : situation 20-2 Assume a closed economy. Suppose that autonomous consumption equals $400, planned investment equals $500, government expenditure equals $200, net taxes equals $50, and the mpc equals 0.9.
-Using the information in situation 20-2,if government spending increases by $100,then the equilibrium aggregate output will change by
A) -$1,000.
B) -$100.
C) $100.
D) $1,000.
Correct Answer:
Verified
Correct Answer:
Verified
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