Assume That Initially G Is $100 and Equilibrium Real GDP

question 32

Multiple Choice

Assume that initially G is $100 and equilibrium real GDP demanded is $1,000.If the multiplier is 4 and G increases to $200,real GDP demanded will increase

• A)by $100
• B)by $2,000
• C)by $1,000
• D)to $1,400
• E)to $2,000

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