In Preparing Their Estimates of the Stimulus Package's Effect on GDP,Obama

question 214

Multiple Choice

In preparing their estimates of the stimulus package's effect on GDP,Obama administration economists estimated a government purchases multiplier of 1.57.This indicates that a ________ increase in government purchases would increase equilibrium real GDP by $157 billion

• A)$1 billion
• B)$10 billion
• C)$100 billion
• D)$157 billion

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Definitions:

Dormant

In a state of temporary inactivity or rest, with the potential to reactivate or wake.

Microclimate

A localized climate that differs from the surrounding area, often influenced by factors like elevation, orientation, or human activity.

Tropical Desert

A desert located in a tropical climate, characterized by high temperatures, minimal rainfall, and sparse vegetation.

Temperate Desert

A biome characterized by low precipitation, moderate temperatures compared to other deserts, and specific vegetation adapted to these conditions.