If an Increase in Investment of $100 Billion Generates an Increase

question 119

Multiple Choice

If an increase in investment of $100 billion generates an increase of $500 billion in real GDP, the multiplier is

• A)20
• B)50
• C)1.50.
• D)5.00.

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Definitions:

Machine Milkers

Mechanical devices or systems used to extract milk from dairy animals, such as cows or goats.

Marginal Product

The supplementary production derived by adding one more unit of a particular input, with all else remaining constant.

Labor Hours

The amount of time workers spend on the job, often measured in hours per day, week, or year.

Returns to Scale

The speed at which production levels rise due to a corresponding rise in all contributing factors.