Suppose That the Level of GDP Increased by $100 Billion

question 59

Multiple Choice

Suppose that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is 0.5. Aggregate expenditures must have increased by

• A) $100 billion.
• B) $50 billion.
• C) $500 billion.
• D) $5 billion.

---

Definitions:

Hypnosis

A trance-like state of heightened focus and concentration often used for therapeutic purposes, characterized by increased suggestibility.

Childhoods

The period in human life that spans from birth to adolescence, characterized by growth, development, and learning.

Beta Brain Rhythms

Brainwave patterns associated with active, alert states of consciousness.

Meditation

A practice of focused attention to achieve a mentally clear and emotionally calm state.