Exhibit 12-1 -Given the Information in Exhibit 12-1, If Government Purchases Increased

question 46

Multiple Choice

Exhibit 12-1

-Given the information in Exhibit 12-1, if government purchases increased to $100, equilibrium real GDP demanded would

• A)decrease by $100
• B)decrease by $300
• C)decrease by $500
• D)stay the same
• E)increase by $100

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Definitions:

Measuring

The process of determining the size, amount, or degree of something through the use of instruments or standardized tests.

Psychological Theory

A framework designed to explain and predict mental processes and behaviors.

Independent Variables

Factors that are manipulated by researchers to observe their effect on dependent variables in experiments.

Dependent Variables

In experimental research, the variable that is being measured or tested, and is expected to change as a result of manipulations to the independent variable.