Author Question: A 50 billion increase in both government spending and taxes will A) increase GDP by less than 50 ... (Read 72 times)

CBme · **on:** Jun 30, 2018

A 50 billion increase in both government spending and taxes will

A) increase GDP by less than 50 billion. B) not change the level of GDP.
C) increase GDP by 50 billion. D) increase GDP by more than 50 billion.

Question 2

50 of the national income in an economy goes to labor. If this economy has a Cobb-Douglas production function, ________ of its national income should go to capital.

A) 50 B) 15 C) 20 D) 30