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Author Question: Suppose that Year 1 is the base year. Year 2 real GDP is A) 200. B) 270. C) 310. D) ... (Read 22 times)

iveyjurea

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on: Jun 30, 2018
Suppose that Year 1 is the base year. Year 2 real GDP is
 
  A) 200.
  B) 270.
  C) 310.
  D) 390.

Question 2

In the IS model, assuming that the real interest rate does not change, an increase in autonomous net exports causes total investment, planned plus unplanned, to ________.
 
  A) fall, then rise back to its initial level
  B) fall, then rise above its initial level
  C) rise, then fall back to its initial level
  D) all of the above
  E) none of the above


potomatos

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

C

Answer to Question 2

A


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