Assume That Potential GDP Is $200 Billion and the Multiplier

question 42

Multiple Choice

Assume that potential GDP is $200 billion and the multiplier equals 5.The recessionary gap is $10 billion.What is the actual level of equilibrium income?

• A)$200 billion
• B)$150 billion
• C)$100 billion
• D)$80 billion
• E)$50 billion

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Definitions:

Self-Efficacy Conditioning

A process of building one's belief in their own ability to succeed at specific tasks through repeated experiences of achievement.

Voluntary Behavior

Actions that are performed willingly and without coercion, often reflecting personal choice and control.

Operant Behavior

A type of behavior that is influenced by the consequences that follow it, with rewards typically increasing the frequency of the behavior and punishments decreasing it.

Consequences

The outcomes or effects that result from actions or conditions.