If a $20 Billion Increase in Government Expenditures Increases Equilibrium

question 41

Multiple Choice

If a $20 billion increase in government expenditures increases equilibrium GDP by $50 billion,then:

• A) the multiplier is 2.
• B) the MPC for this economy is .6.
• C) inflation is occurring.
• D) the MPS for this economy is .6.

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Definitions:

Johari Window

A model used to enhance understanding between individuals, outlining four areas: what is known to the self and others, known to self but not others, known to others but not the self, and unknown to both.

Self-Disclosure

The act of sharing intimately personal information about oneself with others.

Hidden Area

In the context of the Johari Window, it refers to information about oneself that is known to others but unknown to oneself.

One-Way Communication

A form of communication where information flows from the sender to the receiver without any feedback or interaction from the latter.