If the Government Increases Its Purchases by $100 and the Multiplier

question 17

Multiple Choice

If the government increases its purchases by $100 and the multiplier is 4,then equilibrium real GDP demanded

• A)increases by $25
• B)decreases by $25
• C)increases by $100
• D)increases by $400
• E)decreases by $400

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Definitions:

Blocking Variable

A variable that groups experimental units in a way that reduces the effects of variability on the outcome, enhancing the experiment’s accuracy.

Supermarket Chains

Large retail organizations consisting of multiple supermarket locations, offering a wide variety of food and household products.

Type of Item

Refers to the categorization or classification of an item based on its attributes, purpose, or other distinguishing characteristics.

Blocking

A technique used in experimental design to minimize the effects of variable confounding by grouping similar experimental units together and randomly assigning treatments within these blocks.