Suppose that real GDP is initially $14 trillion and the government attempts to increase real GDP to $15 trillion
The marginal propensity to consume is 0.8, and every $1.00 increase in real government spending crowds out $0.50 in real planned investment expenditures. Which increase in government spending below could yield the desired level of real GDP?
A) $100 billion
B) $125 billion
C) $200 billion
D) $400 billion
D
Economics
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Suppose that the basket of goods purchased by the typical consumer costs $188.80 this year and it cost $160 in the base year. The CPI this year would be
A) 28.8. B) 85.11. C) 118.0. D) 348.8.
Economics
Which is NOT a capital?
(A) The person whose photograph is snapped by the candid photographer. (B) The state house where state government is conducted. (C) The paint used by a housepainter. (D) The computer used by an accountant.
Economics