Consider a Simple Macro Model with Government and Demand-Determined Output

question 37

Multiple Choice

Consider a simple macro model with government and demand-determined output.If the government wants to reduce equilibrium national income by $20 billion,G must be

• A)raised by $20 billion times the simple multiplier.
• B)raised by $20 billion divided by the simple multiplier.
• C)lowered by $20 billion times the simple multiplier.
• D)lowered by $20 billion divided by the simple multiplier.
• E)lowered by $20 billion.

---

Definitions:

Narrative Writing

A form of writing that tells a story or recounts a series of events in a structured manner, often employing descriptive detail and character development.

Periodic Report

A report issued at regular intervals to provide information or updates on a project or situation.

Letter

A written, typed, or printed communication sent to a recipient or recipients, typically enclosed in an envelope.

Formal Report

A detailed, structured document that presents and analyzes facts and findings relevant to a specific issue or situation.