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

---

Definitions:

0s And 1s

Represents the binary number system fundamental to computing, using only two digits: 0 and 1.

Computers

Electronic devices that can be programmed to carry out sequences of arithmetic or logical operations automatically.

Inkjet

A type of printer that creates images by propelling droplets of ink onto paper, widely used for home and office applications.

Laser Printers

Printers that use a laser beam to transfer toner onto paper, producing high-quality text and graphics quickly.