If a 10 increase in government expenditure produces a change of ...

[londonang]

If a 10 increase in government expenditure produces a change of 17 in gross domestic product, the value of the government expenditure multiplier is ________.
 
  A) 27 B) 1.7 C) 7 D) 170

Question 2

What are the two techniques to optimization? How do the techniques differ?
 
  What will be an ideal response?

[memslove]

Answer to Question 1

B

Answer to Question 2

Optimization can be achieved using either of two techniques: optimization in levels or optimization in differences. Although both techniques provide identical results, there are differences between them. Optimization in levels analyzes the total net benefit of different alternatives, whereas optimization in differences analyzes the change in net benefits when switching from one alternative to another. Optimization in differences is often faster to implement than optimization in levels, because optimization in differences only focuses on the way alternatives differ.