If the Government Purchases Multiplier Equals 2,and Real GDP Is

question 261

Multiple Choice

If the government purchases multiplier equals 2,and real GDP is $14 trillion with potential real GDP $14.5 trillion,then government purchases would need to increase by ________ to restore the economy to potential real GDP.

• A)$7.25 trillion
• B)$1 trillion
• C)$500 billion
• D)$250 billion

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Definitions:

Hypermobility

An increased range of motion in joints, beyond the normal range, often resulting from genetic factors or specific conditions.

Ligaments

Fibrous connective tissues that connect bones to other bones, playing a key role in stabilizing and supporting joints.

Passive Stretching

Stretching muscles by using external forces, such as gravity or another person, without the individual's active contribution.

Static Stretching

A form of stretching exercises where you hold a position for a specific period to lengthen and loosen the muscles.