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    Economics A Contemporary Introduction
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    Exam 24: The Algebra of Demand-Side Equilibrium
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    If the Government Increases Its Purchases by $100 and the Multiplier
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If the Government Increases Its Purchases by $100 and the Multiplier

Question 17

Question 17

Multiple Choice

If the government increases its purchases by $100 and the multiplier is 4,then equilibrium real GDP demanded


A) increases by $25
B) decreases by $25
C) increases by $100
D) increases by $400
E) decreases by $400

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