Suppose the Multiplier Is 2

question 29

Multiple Choice

Suppose the multiplier is 2.5 and investment increases by $20 billion. Starting at potential GDP, in the long run, equilibrium real GDP

• A)increases by $50 billion.
• B)increases by more than $50 billion.
• C)decreases by less than $50 billion.
• D)does not change.
• E)increases by less than $50 billion.

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Definitions:

Phototropic Response

The growth movement or orientation of a plant in response to light direction.

Wavelength

The distance between two consecutive peaks or troughs in a wave, typically used in the context of electromagnetic spectra.

Apical Dominance

The phenomenon where the main, central stem of the plant is dominant over (grows more strongly than) other side stems.

Auxin

A plant hormone that promotes root formation and bud growth.