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:

Satellite Television

A broadcasting service that delivers television programming via satellite signals received by an outdoor antenna connected to a satellite receiver.

Insurance Policy

A contract between an insurer and a policyholder, specifying the terms under which the insurer agrees to compensate the policyholder for specified losses or damages.

Door-to-Door

Door-to-door refers to a direct selling method where salespeople visit potential customers in their homes or offices to sell products or services.

Service Salesperson

A professional who specializes in selling intangible products, such as service contracts or subscriptions.