In Preparing Their Estimates of the Stimulus Package's Effect on GDP,Obama

question 135

Multiple Choice

In preparing their estimates of the stimulus package's effect on GDP,Obama administration economists estimated a government purchases multiplier of 1.57.This indicates that a $1 billion increase in government purchases would increase equilibrium real GDP by

• A)$1 billion.
• B)$1.57 billion.
• C)$15.7 billion.
• D)$157 billion.

---

Definitions:

Self-Focus

The act of directing attention inward, towards one's own thoughts, feelings, and experiences, which can influence self-awareness and personal growth.

Form Impressions

The process of forming opinions or beliefs about others based on the initial information presented to us.

Accurate Impression

The correct or truthful understanding or representation of something or someone's character, appearance, or behavior.

Interaction

A pattern of results in which the effect of one independent variable on the dependent variable depends on the level of a second independent variable.