Multiple Choice
If the MPC = 0.6 and government purchases increase by $2 trillion,then equilibrium real GDP demanded
A) increases by $5 trillion
B) decreases by the government multiplier
C) increases by $2 trillion
D) decreases by $5 trillion
E) is indeterminate
Correct Answer:
Verified
Correct Answer:
Verified
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Q4: Government purchases are assumed to be autonomous
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Q8: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
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