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Author Question: If autonomous investment increases by 200 billion and the marginal propensity to consume (MPC) is ... (Read 39 times)

ec501234

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on: Jun 30, 2018
If autonomous investment increases by 200 billion and the marginal propensity to consume (MPC) is 0.5, then
 
  A) real Gross Domestic Product (GDP) will rise by 100 billion.
  B) real Gross Domestic Product (GDP) will rise by 200 billion.
  C) real Gross Domestic Product (GDP) will rise by 400 billion.
  D) real Gross Domestic Product (GDP) will decrease by 100 billion.

Question 2

A period in which real GDP in the economy declines for at least six months is referred to as
 
  A) a recession. B) living standards.
  C) long term growth. D) a positive fluctuation.


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dreamfighter72

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


ec501234

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

bitingbit

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Reply 3 on: Yesterday
Gracias!

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