If an Economy Spends 90% of Any Increase in Real

question 67

Multiple Choice

If an economy spends 90% of any increase in real GDP, then an increase in autonomous investment of $1 billion would result ultimately in an increase in equilibrium real GDP of

• A) $1.0 billion.
• B) $1.9 billion.
• C) $10 billion.
• D) $100 billion.

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Definitions:

Political Machines

Organizations led by a boss or a small group that commands enough votes to maintain political and administrative control of a city, county, or state, often involved in corruption and bribery.

Urban Areas

Urban areas are densely populated regions that include cities and towns where there is a concentration of infrastructure, housing, and services.

Urban Residents

Individuals who live within the densely populated areas or cities, often characterized by higher access to services and amenities compared to rural areas.

Political Corruption

The abuse of power by government officials for personal gain, undermining the integrity of political processes and institutions.