The Change in Real GDP Resulting from an Initial Change

question 74

Multiple Choice

The change in real GDP resulting from an initial change in spending can be calculated by:

• A) Dividing the multiplier by the initial change in spending
• B) Dividing the initial change in spending by the multiplier
• C) Multiplying the multiplier by the initial change in spending
• D) Adding the initial change in spending to the multiplier

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Definitions:

The Cat In The Hat

A classic children's book by Dr. Seuss featuring a mischievous cat who turns a dull, rainy day into an adventurous one for two young siblings.

Placenta

An organ formed in the uterus during pregnancy that provides oxygen and nutrients to the fetus while removing waste products.

Nourishment

The sustenance necessary for growth, health, and good condition, often referring to the food and drink that provides essential nutrients.

Fetal Period

The stage of human development that begins at the end of the embryonic period (around week 9) and continues until birth.