Exhibit 11-2 -Refer to the Graph in the Exhibit.Consider an Economy Characterized

question 147

Multiple Choice

Exhibit 11-2

-Refer to the graph in the exhibit.Consider an economy characterized by the aggregate expenditure.Suppose government spending is independent of the level of real GDP.What is the government spending multiplier?  

• A) 0
• B) 1
• C) 2
• D) 3

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Definitions:

Primary Data

Marketing information that is observed, recorded, or collected directly from respondents.

Multinational Chain

A company that owns and operates facilities in multiple countries across the globe.