If the MPC = 0.8, and planned autonomous investment increases by $80 billion, then equilibrium real GDP will increase by
A) $64 billion.
B) $80 billion.
C) $320 billion.
D) $400 billion.
Correct Answer:
Verified
Q435: The size of the multiplier depends on
A)
Q436: When the SRAS curve slopes upward, the
Q437: A lower price level causes the C
Q438: A higher price level causes
A) the aggregate
Q439: Which of the following is a TRUE
Q441: Suppose the economy is initially at equilibrium,
Q442: What is the significance of the multiplier?
Q443: How does a reduction in the price
Q444: If society wants aggregate demand to increase
Q445: An increase in planned real investment spending
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents