If the Economy Spends 80% of Any Increase in Real

question 65

Multiple Choice

If the economy spends 80% 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) $0.8 billion.
• B) $1.0 billion.
• C) $1.8 billion.
• D) $5.0 billion.

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Definitions:

Information-Processing

The means by which information is stored, retrieved, and utilized by the brain or in computational systems.

Retrieval Ability

The capacity to access and recover information from memory, significant in various contexts including learning, decision-making, and problem-solving.

Cognitive Factors

Mental processes involved in perception, memory, judgment, and decision-making that influence behavior.

Information Processing

The series of activities by which stimuli are perceived, transformed into meaningful information, and stored in memory.