Author Question: The multiplier is 5 and, as a result of a change in expenditure, equilibrium expenditure and real ... (Read 161 times)

debasdf · **on:** Jun 29, 2018

The multiplier is 5 and, as a result of a change in expenditure, equilibrium expenditure and real GDP change by 200 billion. What was the initial change in autonomous expenditure?

A) 20 billion
B) 50 billion
C) 1,000 billion
D) 40 billion
E) 200 billion

Question 2

It is estimated that if the inflation rate is lowered from 3 percent a year to 0 percent a year, the growth rate of real GDP will rise by ________ percentage points a year.

A) 2.3 B) 3.2 C) 1 to 3 D) 0.06 to 0.09 E) 0