A period of decline in total output, income, employment, and trade, lasting six months or longer, is defined as a:

In general, an increase in price could be caused by either:

a. an increase in demand or a decrease in supply. b. an increase in demand or an increase in supply. c. a decrease in demand or an increase in supply. d. an increase in demand or an increase in supply.

The economy is in a recession. The government enacts a policy to increase spending by $2 billion. The MPS is 0.2. What would be the full increase in real GDP from the change in government spending assuming that the aggregate supply curve is horizontal across the range of GDP being considered?

A. $6 billion B. $8 billion C. $10 billion D. $16 billion