Assume the AS Curve Is Upward-Sloping

question 138

Multiple Choice

Assume the AS curve is upward-sloping.If the multiplier is 4 and the government increases transfer payments by $10 billion,then real output will increase by

• A)Less than $30 billion.
• B)Exactly $30 billion.
• C)Exactly $40 billion.
• D)Exactly $50 billion.

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Definitions:

Gulf of Mexico

A large ocean basin near the southeastern coast of North America, bounded by the United States, Mexico, and Cuba, known for its rich biodiversity and significant oil reserves.

Narrow Ocean

A relatively thin and elongated body of oceanic water situated between more substantial land masses.

Narrow Ocean

Refers specifically to the relatively thinner and smaller expanses of ocean, often found between landmasses.

Narrow Sea

A relatively small and elongated body of seawater that lies between two landmasses, often acting as a natural border.