In Preparing Their Estimates of the Stimulus Package's Effect on GDP,Obama

question 135

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 $1 billion increase in government purchases would increase equilibrium real GDP by

• A)$1 billion.
• B)$1.57 billion.
• C)$15.7 billion.
• D)$157 billion.

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Definitions:

Factory Lunchroom

An area within a manufacturing facility allocated for employee meals and breaks.

Receiving Report

A document used to confirm the receipt of goods delivered, detailing the quantity and condition of the items.

Receiving Department

The section of a company responsible for the acceptance, inspection, and management of incoming goods or materials.

Work in Process

Partially finished goods undergoing manufacture, situated between raw materials and finished products in accounting and inventory.