Suppose a Country Increases Government Purchases by $700 Billion

question 29

Multiple Choice

Suppose a country increases government purchases by $700 billion. Suppose the government spending multiplier is 2 and the economy's real GDP is $6,000 billion. This policy action shifts the aggregate demand curve to the right by

• A) $12,000 billion.
• B) $3,000 billion.
• C) $1,400 billion.
• D) $350 billion.

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Emotional Intelligence Competencies

The skills and capabilities that enable individuals to recognize, understand, and manage their own emotions and those of others effectively.

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