Suppose Government Purchases Increase by $100 Million in an Economy,which

question 33

Multiple Choice

Suppose government purchases increase by $100 million in an economy,which leads to total output increasing by $500 million.The size of the multiplier is _____.

• A)$400
• B)5
• C)$500
• D)0.5
• E)50

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Definitions:

Toyota

A multinational automotive manufacturer known for its range of vehicles and innovations in manufacturing and production systems.

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Various methods and mediums used to generate public attention or news coverage for a product, event, or organization, often without direct payment.

Nonpersonal Presentation

A marketing strategy that involves the promotion of products or services without direct human interaction, typically through media and digital channels.

Direct Cost

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor costs.