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Author Question: If an economy consumes 75 percent of any increase in real GDP and spends 10 percent of this ... (Read 42 times)

newbem

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on: Jun 30, 2018
If an economy consumes 75 percent of any increase in real GDP and spends 10 percent of this increased income on imports, then a decline in government spending by 60 million will result in a total reduction in equilibrium income of:
 a. 171.43 million.
  b. 123.47 million.
  c. 151.63 million.
  d. 73.47 million.
  e. 71.43 million.

Question 2

A downward-sloping demand curve illustrates
 a. that demand increases.
 b. that prices fall.
 c. the relationship between income and demand.
  d. the law of demand.


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shaquita

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

a

Answer to Question 2

d


newbem

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Reply 2 on: Jun 30, 2018
Excellent

xthemafja

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Reply 3 on: Yesterday
:D TYSM

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