Use the Following to Answer Questions

question 48

Multiple Choice

Use the following to answer questions .
Exhibit: Real GDP and the Multiplier

-(Exhibit: Real GDP and the Multiplier) Holding everything else constant, if net exports fall by $400 billion, equilibrium real GDP will decrease

• A) $1,000 billion.
• B) $800 billion.
• C) $500 billion
• D) $400 billion.

---

Definitions:

Social Science

The study of human society and social relationships, encompassing disciplines like psychology, sociology, and economics.

Marginal Cost

The change in overall cost resulting from the production of an additional unit.

Marginal Benefit

The gain in satisfaction or usefulness from consuming or producing a further unit of a good or service.

Rational Choice

A theory in economics and sociology that states individuals choose the most advantageous option considering the costs and benefits.