If a $10 Increase in Government Expenditure Produces a Change

question 79

Multiple Choice

If a $10 increase in government expenditure produces a change of $17 in GDP,the value of the government expenditure multiplier is ________.

• A) 1.7
• B) 7
• C) 27
• D) 170

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Definitions:

Realignment

A significant shift in the political landscape, often characterized by changes in party allegiance, voting patterns, or the emergence of new political issues.

Political Party

An organized group of people with similar political aims and opinions that seeks to influence public policy by getting its candidates elected to public office.

Interest Group

An organization or group that advocates for its members' interests, often in the political realm.

National

Pertaining to or encompassing an entire nation, as opposed to being regional or local; often refers to governmental policies or initiatives at the country-wide level.