Everything Else the Same, If Government Expenditure Increases by $400

question 25

Multiple Choice

Everything else the same, if government expenditure increases by $400 billion and imports increase by $400 billion, then GDP

• A) decreases by $400 billion.
• B) decreases by $200 billion.
• C) increases by $400 billion.
• D) does not change.
• E) increases by $200 billion.

---

Definitions:

Lower-Income Countries

Nations with relatively low levels of economic resources and standards of living, often measured by gross domestic product (GDP) per capita.

Absolute Poverty

The amount of money needed in a particular country to meet basic needs of food, shelter, and clothing.

United Nations

An international organization founded in 1945 to promote peace, security, and cooperation among countries.

Abnormality

Abnormality refers to a deviation from the norm or average, often used in medical, psychological, and biological contexts to describe differences in behavior, structure, or function.