Figure 23-3 -Refer to Figure 23-3.Suppose That Government Spending Increases,shifting Up the Increases,shifting

question 202

Multiple Choice

Figure 23-3
-Refer to Figure 23-3.Suppose that government spending increases,shifting up the aggregate expenditure line.GDP increases from GDP1 to GDP2,and this amount is $400 billion.If the MPC is 0.75,then what is the distance between N and L or by how much did government spending change?

• A)$10 billion
• B)$100 billion
• C)$200 billion
• D)$300 billion

---

Definitions:

Attributions

The process of explaining the causes of behaviors and events, which can be internal (personal factors) or external (situational factors).

Personally Relevant

Pertains to information or situations that hold significant importance or consequence to the individual on a personal level.

Motives

Internal drives or reasons that prompt individuals to act in certain ways.

Self-Fulfilling Prophecies

Predictions that directly or indirectly cause themselves to become true, due to positive feedback between belief and behavior.