If Government Expenditures Increase by $20 Billion and Equilibrium GDP

question 135

Multiple Choice

If government expenditures increase by $20 billion and equilibrium GDP increases by $50 billion as a result, we can conclude that:

• A)the expenditures multiplier is 2.
• B)the MPC for this economy is .6.
• C)inflation is occurring.
• D)the MPS for this economy is .6.

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Definitions:

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they are trying to accomplish, align day-to-day work with strategy, and monitor performance against strategic goals.

Not-for-profit

Organizations that operate without the primary goal of financial profit, often focusing on social, educational, or humanitarian objectives.

All Sectors

Refers to every part of an economy, including primary (agriculture), secondary (manufacturing), and tertiary (services) sectors.

Competitors' Costs

The expenses that competitor companies incur in the production and marketing of their goods or services.