Solved

The Figure Given Below Represents the Macroeconomic Equilibrium in the Aggregate

Question 69

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.If autonomous government expenditures increase by $250 billion, equilibrium real GDP will: A) rise by $250 billion. B) fall by 300 billion C) rise by $500 billion. D) rise by $75 billion. E) rise by $100 billion. In the figure:
C: Consumption
I1 and I2: Investment
G: Government Spending
X: Exports
Refer to Figure 10.4.If autonomous government expenditures increase by $250 billion, equilibrium real GDP will:


A) rise by $250 billion.
B) fall by 300 billion
C) rise by $500 billion.
D) rise by $75 billion.
E) rise by $100 billion.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents