Multiple Choice
Figure 12-4
-Refer to Figure 12-4.Potential GDP equals $100 billion.The economy is currently producing GDP1 which is equal to $90 billion.If the MPC is 0.8,then how much must autonomous spending change for the economy to move to potential GDP?
A) -$18 billion
B) -$2 billion
C) $2 billion
D) $18 billion
Correct Answer:

Verified
Correct Answer:
Verified
Q55: C = 3,600 + (MPC)Y<br>I = 1,200<br>G
Q76: What is the main reason for changes
Q91: Consumption spending is $5 million,planned investment spending
Q100: If firms sell exactly what they expected
Q115: If aggregate expenditure is less than GDP,how
Q141: Equations for C,I,G,and NX are given below.If
Q148: Consumption spending refers to _ spending on
Q150: For all points below the 45 degree
Q264: On the 45 degree-line diagram,the 45 degree
Q285: Consumption is $5 million,planned investment spending is