A 50 billion increase in both government spending and taxes will ...

[CBme]

A 50 billion increase in both government spending and taxes will
 
  A) increase GDP by less than 50 billion. B) not change the level of GDP.
  C) increase GDP by 50 billion. D) increase GDP by more than 50 billion.

Question 2

50 of the national income in an economy goes to labor. If this economy has a Cobb-Douglas production function, ________ of its national income should go to capital.
 
  A) 50 B) 15 C) 20 D) 30

[Rilsmarie951]

Answer to Question 1

C

Answer to Question 2

A

[CBme]

Thanks for the timely response, appreciate it

[JCABRERA33]

Excellent