If the Government Increases Its Purchases by $100 and the Multiplier

question 17

Multiple Choice

If the government increases its purchases by $100 and the multiplier is 4,then equilibrium real GDP demanded

• A)increases by $25
• B)decreases by $25
• C)increases by $100
• D)increases by $400
• E)decreases by $400

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Definitions:

Unconditional Positive Regard

Fundamental acceptance of a person regardless of what they say or do; term associated with humanistic psychology.

Systematic Desensitization

A behavioral therapy technique designed to reduce anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Aversion Therapy

A form of psychological treatment where an undesirable behavior is paired with an unpleasant stimulus to reduce the behavior's occurrence.

Hierarchy Of Stimuli

A concept in psychology indicating that certain stimuli are processed and responded to at different priority levels.