Suppose that real GDP is initially $20 trillion and the government attempts to increase real GDP to $21 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?

The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers

a. True b. False Indicate whether the statement is true or false

Which combination of shifts of aggregate demand and supply would definitely cause an increase in real GDP?

A. Demand shifts to the right and supply shifts to the right. B. Demand shifts to the left and supply shifts to the right. C. Demand shifts to the right and supply shifts to the left. D. Demand shifts to the left and supply shifts to the left.