In Preparing Their Estimates of the Stimulus Package's Effect on GDP,Obama

question 214

Multiple Choice

In preparing their estimates of the stimulus package's effect on GDP,Obama administration economists estimated a government purchases multiplier of 1.57.This indicates that a ________ increase in government purchases would increase equilibrium real GDP by $157 billion

• A)$1 billion
• B)$10 billion
• C)$100 billion
• D)$157 billion

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Definitions:

Miller And Urey

Scientists known for their experiment demonstrating that organic compounds essential for life could be formed from inorganic components under conditions thought to mimic those of early Earth.

Organic Compounds

Chemical compounds made up of carbon atoms bonded to other elements, integral to living organisms.

Oxygen

A chemical element essential for most forms of life on Earth, vital for cellular respiration and a component of water.