Consider a Simple Macro Model with Government and Demand-Determined Output

question 37

Multiple Choice

Consider a simple macro model with government and demand-determined output.If the government wants to reduce equilibrium national income by $20 billion,G must be

• A)raised by $20 billion times the simple multiplier.
• B)raised by $20 billion divided by the simple multiplier.
• C)lowered by $20 billion times the simple multiplier.
• D)lowered by $20 billion divided by the simple multiplier.
• E)lowered by $20 billion.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values.

Observed Average Time

The mean time recorded for a task or activity, based on actual observations rather than theoretical calculations.

Confidence

The feeling or belief in one's abilities, qualities, or the reliability of something or someone.

Actual Value

The real, measured value of an object, property, or financial instrument, as opposed to its estimated or anticipated value.