Refer to Figure 23-3. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP1 to GDP2, and this amount is $400 billion. If the MPC is 0
75, then what is the distance between N and L or by how much did government spending change?
A) $10 billion B) $100 billion C) $200 billion D) $300 billion
B
Economics
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Refer to Table 21.1. If Martha's income doubled to $220,000 while the incomes of the other four residents did not change, what would happen to the original median income on Richlandia?
A) It would increase by $22,000. B) It would increase by $44,000. C) It would double. D) It would not change.
Economics
Which is true?
a. strong property laws encourage property owners to start businesses b. corrupt legal systems discourage economic growth c. a strong financial system allows those with entrepreneurial ideas access to funding d. all
Economics