The Multiplier Is 2

question 171

Multiple Choice

The multiplier is 2.5 and the SAS curve is upward sloping. Investment increases by $20 billion. In the short run, equilibrium real GDP will

• A) increase by less than $50 billion.
• B) decrease by $50 billion.
• C) increase by $50 billion.
• D) decrease by less than $50 billion.

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Definitions:

Helper

An individual who provides assistance, support, or service to others, often in a context of health, social services, or emergency situations.

Racial Microaggressions

Subtle, often unintentional, indignities or demeaning messages conveyed to individuals based on their racial or ethnic background.

Verbal Indignities

Insults or derogatory remarks made through spoken words that can harm an individual's dignity or self-esteem.

Environmental Indignities

Situations or conditions in which people are exposed to treatment or circumstances that are damaging to their dignity and well-being, often rooted in environmental injustice.