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Author Question: Suppose the government expenditure increases by 200 and the simple spending multiplier equals 5 . ... (Read 91 times)

Evvie72

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on: Jun 30, 2018
Suppose the government expenditure increases by 200 and the simple spending multiplier equals 5 . The final increase in output will be:
 a. 6000.
 b. 500.
 c. 200.
 d. more than 200.
  e. less than 200.

Question 2

Which of the following is not a component of aggregate expenditure?
 a. Consumption expenditures
  b. Investment
 c. Imports
 d. Rent
 e. Government purchases


Melissahxx

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

d

Answer to Question 2

d


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