In a Simple Macro Model with Government and Demand- Determined

question 31

Multiple Choice

In a simple macro model with government and demand- determined output, to reduce equilibrium national income by $100 billion, G must be

• A)raised by $100 billion times the simple multiplier.
• B)lowered by $100 billion divided by the simple multiplier.
• C)lowered by $100 billion.
• D)lowered by $100 billion times the simple multiplier.
• E)raised by $100 billion divided by the simple multiplier.

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged, indicating optimal decision-making among competitors.

Michigan Football

The football team representing the University of Michigan, known for its history and achievements in college football.

Gain Yards

A term often used in American football to describe the act of advancing the ball closer to the opposing team's goal line.

Probability .50

A statistical measure indicating that an event has an equal chance of occurring or not occurring, often represented as a 50% chance.