If the MPC is .8, the multiplier is

If an increase in crime causes households to spend money on police and security systems, GDP will rise

Indicate whether the statement is true or false

According to Okun's law, if full-employment output is $5000 billion, then each percentage point of unemployment sustained for one year reduces output by

A) $50 billion. B) $100 billion. C) $150 billion. D) $200 billion.