Multiple Choice
Assume autonomous net taxes rise by $500, and the marginal propensity to consume equals 0.75.Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed.As a result, how will equilibrium real GDP demanded change?
A) It will rise by $500.
B) It will fall by $500.
C) It will rise by $1,500.
D) It will fall by $1,500.
Correct Answer:
Verified
Correct Answer:
Verified
Q137: Suppose equilibrium real GDP demanded rises from
Q138: Which of the following best characterizes stagflation?
Q139: What is the effect of lags in
Q140: Suppose the marginal propensity to consume (MPC)
Q141: In the AD-AS model, if government purchases
Q143: Suppose government increases its purchases by $100
Q144: What is the opposite of a laissez-faire
Q145: How will the introduction of an autonomous
Q146: Suppose that instead of using discretionary fiscal
Q147: Exhibit 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-2