FIGURE 23-5 -Refer to Figure 23-5.Suppose That an Increase in Government Purchases

question 128

Multiple Choice

FIGURE 23-5
-Refer to Figure 23-5.Suppose that an increase in government purchases caused the AD curve to shift to the right,as shown.If the simple multiplier in this model is 5,then how much was the increase in government purchases?

• A)30
• B)40
• C)50
• D)12
• E)not enough information to know

---

Definitions:

Segment Manager

A manager responsible for overseeing a specific part of a company, such as a department or product line, to ensure its profitability and efficiency.

Chief Operating Decision Maker

An individual or group within an organization primarily responsible for making operational decisions and allocating resources.

Organizational Units

The distinct segments within a company or institution, often defined by function, geography, or product line, that operate to achieve specific objectives.

Combined Segment Revenues

The total revenue generated from multiple segments or units of a business, aggregated together to analyze overall performance.