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The Figure Given Below Represents the Macroeconomic Equilibrium in the Aggregate

Question 78

Multiple Choice

The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero.
Figure 10.4
The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero. Figure 10.4    In the figure: C: Consumption I<sub>1</sub> and I<sub>2</sub>: Investment G: Government Spending X: Exports -Refer to Figure 10.4. The spending multiplier is _____. A)  2 B)  3 C)  6 D)  0.5 E)  1.2 In the figure:
C: Consumption
I1 and I2: Investment
G: Government Spending
X: Exports
-Refer to Figure 10.4. The spending multiplier is _____.


A) 2
B) 3
C) 6
D) 0.5
E) 1.2

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