If the Japanese economy is currently suffering from a recession, we should expect U.S. exports to Japan to

Suppose there is a $200 billion increase in government spending. We know that this increase in government spending will cause which of the following to occur?

A) equilibrium real GDP will increase by exactly $200 billion. B) an increase in equilibrium real GDP and an increase in the multiplier. C) an increase in equilibrium real GDP and a reduction in the multiplier. D) an increase in equilibrium real GDP and no change in the multiplier.

Which of the following statement or statements are correct about potential GDP?

i. Actual real GDP equals potential GDP when the economy is at full employment. ii. Real GDP can be less than potential GDP. iii. When real GDP equals potential GDP, it also equals nominal GDP. A) i only B) ii only C) ii and iii D) i and ii E) i, ii, and iii