Suppose the Economy Is in Equilibrium When Business Firms Decide

question 157

Multiple Choice

Suppose the economy is in equilibrium when business firms decide to increase investment spending by $100 billion.According to the short-run macro model,what would be the effect on equilibrium real GDP?

• A) There would be no effect;the increased investment spending would be offset by decreased spending in other sectors.
• B) It would increase by $100 billion.
• C) It would increase by more than $100 billion.
• D) It would increase,but by less than $100 billion.
• E) It would decline by $100 billion.

Identify the formulation of new questions and hypotheses as a result of scientific investigation.

Understand the significance of comparative experiments and their design.

Acknowledge the impact of environmental variables on biological entities.

Grasp the process of evolution and its impact on biodiversity.

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Definitions:

European Union

A political and economic union of 27 European countries aimed at fostering economic cooperation and ensuring free movement of people, goods, services, and capital.

Trade Barriers

Measures implemented by governments to restrict or discourage international trade, such as tariffs, quotas, and embargoes.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicative of a thriving economic condition.

Euro

The official currency of the Eurozone, which is used by many of the member states of the European Union.