Solved

Suppose the Economy Is Currently at Equilibrium at $1 Trillion

Question 47

Multiple Choice

Suppose the economy is currently at equilibrium at $1 trillion, and the MPC is 0.6.And suppose there is a $100 billion decrease in government purchases of goods and services.Which of the following is the new equilibrium?  


A)  $400 billion 
B)  $600 billion 
C)  $750 billion 
D)  $1.4 trillion

Correct Answer:

verifed

Verified

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

Related Questions

Q42: Which of the following best describes the

Q43: In the simple aggregate expenditure model, what

Q44: Which of the following best characterizes the

Q45: Suppose the marginal propensity to consume equals

Q46: <span class="ql-formula" data-value="\begin{array} { c c c

Q48: A grocery store manager must decide whether

Q49: <br><br> <span class="ql-formula" data-value="\begin{array}{l}\text { Schedule

Q50: Suppose that a pair of graphs represents

Q51: How do households use disposable income?  <br>A) to

Q52: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt=" -Refer to the