The Multiplier Is 5

question 199

Multiple Choice

The multiplier is 5.0 and autonomous expenditure increases by $30 billion. If potential real GDP is unaffected, in the long run, equilibrium real GDP will

• A) increase by $50 billion.
• B) increase by more than $50 billion.
• C) increase by less than $50 billion.
• D) not change.

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