Figure 23-3 -Refer to Figure 23-3. Suppose That Government Spending Increases, Shifting

question 217

Multiple Choice

Figure 23-3
-Refer to Figure 23-3. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP₁ to GDP₂, and this amount is $400 billion. If the MPC is 0.75, then what is the distance between N and L or by how much did government spending change?

• A) $10 billion
• B) $100 billion
• C) $200 billion
• D) $300 billion

---

Definitions:

Intracellular Enzymes

Enzymes that function within the cells to facilitate metabolic processes and biochemical reactions.

Sodium-Potassium Pump

A cellular mechanism that uses ATP energy to transport sodium ions out of the cell and potassium ions into the cell, crucial for maintaining cell potential.

Parathyroid Hormone

A hormone produced by the parathyroid glands that regulates calcium levels in the blood, critical for bone metabolism, nerve function, and muscle contractions.

Osteoclast

Large, multinucleated cell that absorbs bone.