Assume That Initially G Is $100 and Equilibrium Real GDP

question 32

Multiple Choice

Assume that initially G is $100 and equilibrium real GDP demanded is $1,000.If the multiplier is 4 and G increases to $200,real GDP demanded will increase

• A)by $100
• B)by $2,000
• C)by $1,000
• D)to $1,400
• E)to $2,000

---

Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used to quantify the risk associated with a particular investment or portfolio.

Gold Stock

Shares in gold mining companies or in exchange-traded funds or instruments that invest in gold.

Good Economy

A state of economic prosperity characterized by high employment, steady growth, and controlled inflation.

Poor Economy

A condition where there is a decline in financial and economic activities, leading to higher unemployment rates and lower consumer spending.