Real GDP is:
a. the base year market value of all final goods and services produced domestically during a given period.
b. the current year market value of all final goods and services produced domestically during a given period.
c. usually greater than nominal GDP
d. the current year market value of domestic production of intermediate goods.
a
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What will be an ideal response?
In the Keynesian model, an increase in real autonomous spending results in a greater increase in real Gross Domestic Product (GDP) if
A) the marginal propensity to consume (MPC) is lower. B) the marginal propensity to consume (MPC) is higher. C) the average propensity to save (APS) is higher. D) the average propensity to save (APS) is lower.