If the Multiplier Is 3,a $1 Billion Decrease in Government

question 68

Multiple Choice

If the multiplier is 3,a $1 billion decrease in government spending will

• A) lower equilibrium GDP by one-third.
• B) lower equilibrium GDP by 3.
• C) raise equilibrium GDP by one-third.
• D) raise equilibrium GDP by 3.
• E) leave equilibrium GDP unchanged but change intended spending by one-third.

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Definitions:

BPI (Business Process Improvement)

A systematic approach to help an organization optimize its underlying processes to achieve more efficient results.

Operational Excellence

The philosophy of making continuous improvements in operations to enhance quality, efficiency, and customer satisfaction.

Mass Customization

A business strategy that combines the efficiency of mass production with the personalization aspects of custom-made goods or services.

Make-to-order

A manufacturing process in which products are created after a confirmed order is received, allowing for customization.